So just how bad are banks getting hit? The Financial Times undertook an analysis of bank losses in relation to historical profits. Merrill Lynch really stands out. Since the credit crunch started last year, Merrill has posted after-tax losses of more than $14 billion. That amounts to about half of Merrill's profits since the beginning of the ­decade. Whew! Historical profits were adjusted for inflation via a system from www.measuringworth.com. The second highest loss-to-historical profits ratio belongs to UBS. So the market gives, and the market takes. These ratios just might get worse before they get better. At some point, Lehman Brothers may nudge its way into their company.

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