This is a good point.

The banks knew of this problem long before it was in the media. And I would assume most governments knew of this problem.

Probably all the above had a chance to liquidate some of their positions before the big melt down. 

You have to understand that all banks are some what aware of each others position in the worlds markets and most government know the exposed risk of the banks within their countries. A report of their exposure is sent to the their respective governments on a regular basis. (maybe the Swiss are exceptions).

This 7 billion loss has effected the world markets ( along with other situations) as the banks try to shift assets.

Martin Weiss on one of his newsletters said the stock market crash of 87 was going to be caused by a write down of 1 billion. The federal reserve and the U.S.  government had to prop up the offending bank and get other banks to cover the credit and mortgages loans, the bank had, to soften the blow.

This will rebound as assets shift to secure commodities Gold and Silver and their underlying supportive economies.

Rogers.