During the last year, these two Wall Street banks alone have recognized losses on bad investments of a staggering $97 billion.
The timing of when Wall Street firms recognized losses in their mortgage portfolios is an important issue in assessing the causes of the financial crisis.
"What could cause greater economic losses or fallout in the market would be further recognized losses or downgrades in the financial sector," said Joe Davis, an economist at the mutual fund company Vanguard Group.
Jon Peace, a banking analyst at Nomura, counts at least 25 large publicly traded banks that would need more capital if they fully recognized losses in the value of their holdings of European government bonds.
Tennessee last year became the first state to pass legislation recognizing loss of companionship when a pet is killed.
Create new rituals Rituals are powerful bridges: from past to present, from individual to community, from recognizing loss to embracing life.
Bankers resist, because it could force them to recognize losses they would prefer to delay.
Therefore, Enron purported to enter into certain "hedging" transactions in order to avoid recognizing losses from its investments.
Indeed, E*Trade, as is common practice, does not recognize losses in problem loans until it considers them "permanently impaired".
At the same time, new accounting rules are forcing banks to recognize losses on securities portfolios, draining away their earnings.
American banks have been quick to recognize losses, and policy makers have moved to contain the damage and protect the broader economy.
