Thursday, August 14, 2008

Written Down Market Value

Yesterday we took a look at total write-downs to date in absolute terms. This time around, we'll see how a sample of those banks appear on a relative basis.

Specifically, I calculated the "percent of market value written down to date" by putting the bank's writedowns to date in the numerator and the current market value + writedowns in the denominator (with the assumption that market value would have been that higher amount without the writedowns).

What is the result?


Lehman appears to have been impacted to a much greater extent than originally appeared on an absolute basis. This is a likely reason for the substantial capital they've raised to date.

With all those billions raised, I hope that rumor going around that Lehman has another capital raise in the works is just that.

Stay tuned...