Christopher Whalen

Banks Stressing the System vs. Potential Winners of the TARP Repayment Race

Tyler:

Good piece. You sure that the T1 capital series in the chart is correct? Tier One Risk Based Capital excludes many but not all intangibles. Are you subtracting the remaining intangibles to get tangible common? For example, Citi has $30bn in total intangibles in the lead bank. $20b is disallowed as part of T1 RBC. But there is still $10b in intangibles in T1 RBC, so I take out the remaining items.

Chris

Big Banks vs. America

No, actually BCS is the custodian, the holder in
"street name." The beneficial holders are the millions of BCS custodial customers. ;)

Kovacevich's Delayed Retirement: Bove's Criticism is Totally Off Base

Ditto. What is the deal with Dick Bove and the FT? If the CFC BOD wants Dick Kovacevich to stay, he stays. This is one of the best run banks in the world. What is the issue Dick?

I have never understood mandatory retirement rules. People like former Fed Chairman Paul Volcker or former GAO chief Chuck Bowsher are both over the mandatory retirement age for most corps, but I'd have both of them as directors of my firm tomorrow.

Subprime: We Have Nothing to Fear But Forbearance

Agreed. The predictions of authors like (The Two Income Trap, Warren & Tyagi 2003) have definitely been validated. The deflation in the US economy over the next several years could be far more severe than the agriculture-led deflation of the 1930s. All of the mechanisms we have in place to avoid a repeat of that experience are inadequate to the present task.