KEY POINTS:
Global losses from the sub-prime mortgage credit crunch could rise to US$1 trillion and the turmoil on credit markets could last as long as June next year, says a leading banker.
However, we in Australasia will escape most of the fallout, the new CEO of the ANZ Banking Group, Mike Smith, said on the businesspectator.com.au website today.
He went on to say that credit rationing is a real possibility as a result of the sub-prime crisis.
He sees the cost of wholesale funding rising, which will have to be passed on to customers.
- NZHERALD STAFF
