Banks and hedge funds losing big time by the dropping oil prices. [View all]

[dixiegrrrrl]

Karma is a bitch re: the continuing decrease in oil prices.

Banks including Barclays and Wells Fargo are facing potentially heavy losses on an $850 million loan made to two oil and gas companies, in a sign of how the dramatic slide in the price of oil is beginning to reverberate through the wider economy.
That’s just one loan. At 60 cents on the dollar, a $340 million loss. Who knows how many similar, and bigger, loans are out there? Put together, these stories slowly seeping out of the juncture of energy and finance gives the good and willing listener an inkling of an idea of the losses being incurred throughout the global economy, and by the large financiers. There’s a bloodbath brewing in the shadows.

http://www.zerohedge.com/news/2014-11-28/price-oil-exposes-true-state-economy


Meanwhile, KKR and the Carlyle Group are facing huge losses on just one of their oil producing ventures Samson Resources Corp
that they bought for for $7.2 billion in 2011, and now are seeking buyers.

The stakes are especially high for KKR, which saw a $45 billion bet on natural gas prices go sour when Texas power utility Energy Future Holdings filed for bankruptcy this year.

http://in.reuters.com/assets/print?aid=INKCN0IU0DR20141110