U.S. banks have recognized most credit losses: Goldman

U.S. banks have already recognized two-thirds of an estimated $2.1 trillion to $2.6 trillion in credit losses, but prime mortgage and commercial real estate would contribute more to the remaining losses, Goldman Sachs said.

The brokerage raised its prime mortgage loss range to 5 percent to 6 percent and the commercial real estate loss range to 8 percent to 10 percent.

Due to a lower consumer loss outlook, the brokerage remained positive on big banks and credit card stocks such as JPMorgan Chase & Co , Bank of America Corp and Capital One Financial Corp , but was cautious on regional banks.

Goldman said the stress test carried out by the U.S. Treasury in the first half of the year was enough as 2009 loan losses, trading results and pre-provision earnings were better than the stress test forecast.

(Reporting by Jochelle Mendonca in Bangalore; Editing by Anil D'Silva)