New subprime task force monitors banks

The China Banking Regulatory Commission has created a task force to monitor exposure to US subprime holdings at Chinese banks, the Financial Times reported. The task force would investigate the subprime holdings of China’s biggest banks and report their findings on a monthly basis, according to unnamed sources cited by the newspaper. Bank of China , the largest US subprime securities holder in Asia, said it would take larger losses than anticipated on those holdings, although it has not yet revealed the extent of the damage. Its losses could be as high as US$4.8 billion, or more than 60% of its US$7.95 billion in subprime holdings, according to analysts’ estimates.