Survey of Banking Industry Intangible Assets

The number of analysts predicting major further price declines for banks and related companies is increasing by the day.

To work within that perspective, we have begun to look at statistics that may begin to show excess valuation or over-leveraging that may be squeezed out in coming market sessions.

We are awaiting the quarterly reports that will provide the capital adequacy ratios for banks. That ratio is fundamental to credit ratings and capacity to grow, as well as to risks arising from the deleveraging that is sweeping the globe.

Pending that, we thought it might be interesting to see the extent of intangibles banks, savings & loans and consumer lending companies are carrying on their books.

Intangible assets in the balance sheet do not have separate value from the capitalized earnings of a company, and they have no value in liquidation.

We examined entities with $1 billion or more in market cap as of March 14.

The first table below lists 40 companies with the highest percentage of intangibles to market cap. It also shows the market cap to tangible book ratio for those companies.

High Ratio of Intangible Assets to Market Cap

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The second table below lists 40 companies with the lowest percentage of intangibles to market cap, as well as their market cap to tangible book ratio.

Low Ratio of Intangible Assets to Market Cap

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It is grist for the mill for those who chose to invest in individual stocks instead of funds, and who do their own research.

Comments

[sebrock]

All true but it looks like book value is also not recoverable during a liquidation - Bear Stearns is on the top of the low ratio list and JPM is on the high ratio list.

[deefree]

Also look at weak assets as percent of loan portfolio. For example, SNV has $8.008 billion of construction loans in its loan portfolio, or 30+% of its loan portfolio. This is also 233% of shareholder's equity, including intangibles. STI has 11.26% of its loan portfolio in construction loans, or 76% of shareholder's equity, before your haircut for intangibles. However, it is not working as a trading strategy, since its difficult to "fight the Fed" with revaluations of risky assets like ABS upwards.

[H2O]

Order Of The Illuminati - New World Order

Nearly 200 years ago - The founder of the Roth-Child - banking empire said - Give me control over a Nations economy - and I care not who writes the laws !!!!!

Rev. Sun Myung Moon (The Moonies), and the Unification Church
For those few of you who are not familiar with the Rev. Moon, in the 60s both he and his Unification Church were universally regarded as a dangerous cult. The abuse his followers suffered at the hands of their mind manipulating master is indeed very well established.

His claims include stating that Christ failed His mission, and that Moon himself is the "new messiah" who is come to fulfill the mission of God. He also claims that it is his mission to 'unite the world through uniting religious forces'. But would it shock you to know that nearly all the big name Christian evangelicals have extremely strong ties to him?

One such Church leader and internationally recognized evangelical Christian, Jerry Falwell, readily admits that he accepted 2.5 million dollars from Moon in 1994 in order to bail out his Liberty University in Lynchburg, Virginia. This was funneled through a Moon organization known as the 'Womens Federation for World Peace' which has been chaired by Beverly LaHaye, Wife of Timothy LaHaye, who is the popular co-author of the "Left Behind" Christian fictional book series and a well known evangelical Christian. The Womens Federation for World Peace paid 3.5 million to the Christian Heritage Foundation, which in turn bought Falwell's $73 million debt, and then frankly wrote it off. The Heritage Foundation then seems to have paid themselves a fee of one million dollars for their trouble.

Falwell is not the only evangelical reported to have accepted money from Rev. Moon. Other notable speakers for Moon's organizations and affairs receiving as much as $80,000 to $150,000 have included Ralph Reed, Beverly LaHaye, Gary Bauer, and Robert Schuller, well known for his "Crystal Cathedral" in Southern California and "Hour
of Power" 'positive-thinking' television ministry.

[H2O]

Unification Church - New World - Delusion

Most of Moon's money comes from Japan. For almost 20 years there have been consistent reports that one of Moon's most important financial supporters and advisors is Ryoichi Sasakawa. In 1969, Moon and Sasakawa, together, formed the Freedom Leadership Foundation (FLF), which lobbied the U.S. for a hawkish position in Vietnam. One of Sasakawa's favorite projects for the Moon organization was Win Over Communism (WOC), which was a fund raiser for the Unification Church. Sasakawa. was the WOC's chairman. Sasakawa. is clearly one of the richest men in Japan. Much of his money comes from the Japanese motorboat racing industry. Since it was legalized in Japan, it has become a $14 billion sport. Sasakawa. describes himself as "the world's richest Fascist".

In addition to his riches, according to author Walter Pat Choate, "for more than half a century Sasakawa. has been one of the primary political brokers inside Japan". Choate claims that Sasakawa is part of Japan's attempts to influence America's politics and policies. "Many of Sasakawa's and Moon's operations parallel each other. They operate in the same way, giving away money, a great deal of attention to media and media organizations which operate across national borders, and the maintenance of a very right wing conservative focus," states Choate.

According to Choate, Sasakawa's political activities go back 50 years, when he formed one of the most radical and Fascist parties inside Japan. "He was one of those individual business leaders who was calling for war with the United States in the months preceding the attack on Pearl Harbor," claims Choate. In 1931, Sasakawa. formed the Kokusui Taishuto, a militarist political movement, and according to a U.S. Counter Intelligence Corps report after World War Two, Sasakawa. was "one of the most active Fascist organizers prior to the war." He was later imprisoned for plotting the assassination of a former Premier. In 1939, Sasakawa. even flew to Rome in one of his own aircraft to meet personally with Benito Mussolini to help arrange the Axis alliance between Italy, Germany and Japan. Sasakawa organized Japan's black shirts patterned after Mussolini's.

Ten months before the outbreak of World War Two, Sasakawa. toured the South Pacific in a flying boat. There still exist letters which he wrote to his close friend Admiral Yamamoto, the architect of the Pearl Harbor attack, and it was Sasakawa. who was virtually Yamamoto's only political contact to the far right wing in Japan.

Another prominent Japanese war criminal who became an important member and supporter of the Moon organization was Yoshio Kodama. Having become an ultra-nationalist, terrorist leader in Japan at the age of 15, Kodama joined scores of secret societies with names like Blood Brotherhood, Holy War Execution League, Federation of Radical Patriotic Workers, and Capital Rise Asia Academy. He made his living working for those murderous groups. These yakuza armies were bankrolled by and served the interests of wealthy industrials, the police and the Army. They broke up labor unions, "protected" factories and offices, and assassinated opposition leaders. Having participated in a failed plot to assassinate, in one stroke, all the most powerful men in Japan, Kodama ended up in prison for attempted assassination and other terrorist acts.

So why are the American People - Going to these Evangelical churchs?????

Proped up and supported - By a forgein NUT JOB - THAT CALLS HIMSELF THE KILLER - JESUS - THE NEW WAY ORDER - TO BRING ABOUT PEACE - THROUGH WAR >>>>>>>>>>

[jimmy46]

sebrock:
a major source of intangibles is a result of mergers.

The excess of price paid over book is put on the surviving company's book as goodwill.
JPM has a number of recent mergers, chemical, many, chase...
all the junk is still there :>

I don't think bear had any mergers.

Book value is about the crappiest measure of a company.