credit losses could peak at a level of $3.6 trillion for U.S. institutions

Leading economist Nouriel Roubini said today that the U.S. banking system is "bankrupt" and "effectively insolvent":

“I’ve found that credit losses could peak at a level of $3.6 trillion for U.S. institutions, half of them by banks and broker dealers,” Roubini said at a conference in Dubai today. “If that’s true, it means the U.S. banking system is effectively insolvent because it starts with a capital of $1.4 trillion.” ***

“The problems of Citi, Bank of America and others suggest the system is bankrupt,” Roubini said. “In Europe, it’s the same thing.”