Tangible Common Equity and Tier 1 Capital Ratios

Since we took a glance at tangible book/asset ratios, we'll now take a glance at tangible common equity and tier 1 capital ratios, courtesy of Paul Kedrosky. Keep in mind, obviously, that you need to take all of these ratios that we've been throwing at you with a grain of salt. (Taking things with a grain of salt seems to be the theme this week, slash this entire crisis.) Because, of course, a few ratios here and there are not even close to being able to sum up a financial institution's situation. Note that tangible common equity is typically the more 'stringent' of the two measurements.

(click to enlarge)