VIE loss for US banks

The new source of potential losses: so-called variableinterest entities that allow financial firms to keep assets suchas subprime-mortgage securities off their balance sheets. VIEsmay contribute to another $88 billion in losses for banks roiledby the collapse of the housing market, according to bond researchfirm CreditSights Inc. Goldman, which hasn't had any of theindustry's $163 billion in writedowns, said last month it mayincur as much as $11.1 billion of losses from the instruments.