WASHINGTON - (Bradley Trom)
Losses at financial institutions could approach $4.1 trillion worldwide, the International Monetary Fund said Tuesday as it urged countries to take bolder action to bolster banks or risk an even deeper recession.
More capital is needed to cushion against further losses, the IMF's Global Financial Stability Report concluded; An estimated $275 billion in capital for U.S. banks and $600 billion more for European banks.
The report and an updated economic forecast due Wednesday will form the basis for three days of meetings set to begin Friday among finance officials from the world's richest countries and major developing countries. The talks are being held as part of the spring meetings of the IMF and its sister lending institution, the World Bank.