The Bank Capital Mirage

The following more or less supports what some have been saying for a while -– that major banks in the U.S. and the U.K. will end up being entirely nationalized before this crisis is over –- but it's still a striking way of looking at the data. The gist: Government recapitalization and other fund-raising has largely been in service of banks' prior subprime losses, while corporate and consumer loans are just starting to hit bank balance sheets. It won't take much to tip banks over into insolvency again.

Click chart to enlarge.

Comments

[investor88:]

Good analysis with a self explanatory chart.

2008 Oct 23 08:46 AM

[billp37:]

finance.yahoo.com/tech...;_ylt=AlDFIpYPN6bZYktv...

Another Kedrowsky contribution.

2008 Oct 24 08:29 PM