Banks' '£18bn of hidden hits'

My Account
Logout

Create an Evening Standard Account

Use your social network

Save time by using your existing account to sign in to Evening Standard

We'll never share your information or post anything to your account without your permission

Welcome! Sign in here

Use your social network

Save time by using your existing account to sign in to Evening Standard

We'll never share your information or post anything to your account without your permission

Forgot your password ?

Registration

* indicates fields that are mandatory

Email *

Password *

Confirm Password *

First name *

Surname *

Postcode *

Country *

Mobile phone number

Username *

Gender *

Year of birth *

When you sign up...

You will have access to all our online competitions, discounted offers and can post comments on our site.

You will also receive The Weekender newsletter sent every Thursday - it’s full of fantastic offers and ideas for the weekend. You can update your email preferences in your account page when you log in.

Other newsletters and emails

Homes & Property Newsletter - Yes I want to receive the weekly email with all the latest news on property in the capital

Occasionally we would also like to send you relevant emails detailing specific offers either from ourselves or carefully selected partners. If you would prefer not to receive these then please tick the appropriate boxes below. We will never pass on your details.

I do not want to receive additional offers and information from the Evening Standard

I do not want to receive additional offers and information sent by Evening Standard on behalf of carefully selected partners

Terms and Conditions

* I have read, understood and agree to be bound by the terms and conditions of Evening Standard

Registration

Mail Sent for Registration Confirmation.

A confirmation email has been sent. Please activate your account by clicking on the activation link sent in your mail box.

These losses have appeared on balance sheets but not income statements, says a survey of regulatory filings by Bloomberg. The balance-sheet adjustments come on top of the $344 billion of writedowns and credit losses already reported.

The news agency says Citigroup subtracted $2 billion from equity for declining value of home-loan bonds in its quarterly report without mentioning it in the earnings statement.

It says Dutch group ING placed €3.6 billion (£2.9 billion) of negative valuations in its capital account, but disclosed only an €80 million drop in income.

Taking losses on a balance sheet instead of an income statement is acceptable under accounting rules, which make a distinction between trading books and long-term investments, but the practice raises fears that the full scale of the losses may not yet have come to light.

Many banks argue that the valuations of assets will be reversed when markets recover.