IMF ups crisis loss estimate to $1.3 trillion

The International Monetary Fund (IMF) now expects the US credit crisis to cost the global financial system $1.3 trillion.

John Lipsky, the first deputy managing director of the Fund, said Wednesday: "In both the US and Europe, banks have raised substantial amounts of capital while writing down about $520 billion, compared to loss estimates of between $640 to $735 billion for banks and about $1.3 trillion for the entire global financial system."

Lipsky added that the finance sector's woe was "