Banks most exposed to hung loans?

We noted recently that Citigroup has a lot riding on the First Data negotiations with Kohlberg Kravis Roberts in part because it has so much in loans it has to somehow sell. The First Data talks might set the tone. To put some numbers to it, Fitch says there is about $350 billion in loans that need to be sold to support 64 leveraged buyouts. As for specific banks, Citigroup has about $37 billion on its books just for the 20 biggest pending deals. Bank of America is stuck with $31.7 billion. Lehman Brothers, $29 billion, and JP Morgan Chase, $27 billion. These are rough estimates, but you can see that the top commercially oriented banks are in tough spots. This will likely translate into an earnings haircut that will stretch over several quarters. Meanwhile, the likes of Goldman Sachs is thinking about how to invest in such loans.   

For more:
- here's the Financial News Online article

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- Another view of the First Data deal
- The meaning of the First Data battle