by Calculated Risk on 4/06/2009 10:29:00 AM

From Bloomberg: Mayo Says Loan Losses Will Exceed Depression Levels

Mike Mayo ... assigned an “underweight” rating to banks on expectations that loan losses will exceed levels from the Great Depression.

“While certain mortgage problems are farther along, other areas are likely to accelerate, reflecting a rolling recession by asset class,” Mayo wrote in a report today. “New government actions might not help as much as expected, especially given that loans have been marked down to only 98 cents on the dollar, on average.”

Note: Mayo will hold a conference call at 11 AM ET. There will also be a discussion of mark-to-market accounting. See the comments for details ...