tag:blogger.com,1999:blog-11027528911364475.post6278515649558347883..comments2024-02-18T21:10:05.205-08:00Comments on EconomPic: Bank Leverage Ratios... GE Boomin'Jakehttp://www.blogger.com/profile/07946497592651234440noreply@blogger.comBlogger5125tag:blogger.com,1999:blog-11027528911364475.post-64975108103801244192009-02-24T22:24:00.000-08:002009-02-24T22:24:00.000-08:00The GE figures are based on the combined entity. ...The GE figures are based on the combined entity. If you split out capital, the tangible capital ratio is 26.<BR/><BR/>http://www.ge.com/pdf/investors/financial_reporting/ge_10K2009.pdf<BR/><BR/>page 73cap vandalhttps://www.blogger.com/profile/17179669039246988631noreply@blogger.comtag:blogger.com,1999:blog-11027528911364475.post-83654129874962465012009-02-19T19:37:00.000-08:002009-02-19T19:37:00.000-08:00they are also significantly smaller and more nimbl...they are also significantly smaller and more nimble than a citi. thus any capital they raised (via the government or good ole mr. buffet) had a much greater impact.<BR/><BR/>also, as a trading company they had to mark to market more of their assets, thus thinking they probably shed them earlier in the cycle than the others...Jakehttps://www.blogger.com/profile/07946497592651234440noreply@blogger.comtag:blogger.com,1999:blog-11027528911364475.post-37061637883115404242009-02-19T14:37:00.000-08:002009-02-19T14:37:00.000-08:00great point! i am not sure if that means they have...great point! i am not sure if that means they have more or less risk :)Dom Datahttps://www.blogger.com/profile/14403780186722687621noreply@blogger.comtag:blogger.com,1999:blog-11027528911364475.post-17669949318070154852009-02-19T06:34:00.000-08:002009-02-19T06:34:00.000-08:00Isn't the Fed an off balance sheet vehicle for GS?...Isn't the Fed an off balance sheet vehicle for GS?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-11027528911364475.post-87918954966626827542009-02-19T05:04:00.000-08:002009-02-19T05:04:00.000-08:00Jake - question about GS. I thought they always ha...Jake - question about GS. I thought they always had the highest leverage in the industry? Why has that changed? I can think of three potential reasons:<BR/><BR/>1. Their asset base has not fallen as much as those of the other banks (i.e., the their denominator has not shifted as much to the<BR/>2. They have aggressively shed significant amounts of leverage (I have not heard anything about this)<BR/>3. They hold more 'off balance sheet' risk<BR/>Or some combination of the above.<BR/><BR/>Thoughts? It seems to me like they have invested a ton in these 'special situations' type of assets which are highly illiquid even during the boom and are probably complete Zeros. I am wondering when this will hit their bottom line...Dom Datahttps://www.blogger.com/profile/14403780186722687621noreply@blogger.com