Edward Harrison

Big Surprise: Most Big Banks Lack Capital

As with your coment on another article, I am pointing out downside risk. My baseline scenario had assumed that the large banks will earn enough money to make up for any potential writedowns and build adequate risk capital over time.

I am now more concerned that a double dip would jeopardize this.


On Nov 24 04:51 AM bbro wrote:

> Here we go again....Mr Harrison doesn't specify what charge off rates
>
> he thinks will occur for that matter neither does S&P. He keeps
> quoting 1931...well chargeoffs were 1.2 %. Using the two worst years
>
> were 1933 and 1934 the chargeoff were 3.1% and 3.4%...The adverse
>
> stress test had 4.5% for 2 years. Tangible common equity is not the
>
> only proxy for judging health but it certainly is one of them. Preprovision
> earnings is very important in this environment. Why doesn't Mr. Harrison
> discuss that????

U.K. PM Brown Rejects Call to Break Up Big Banks

I find it irritating as well. The title on my blog was:

PM Brown rejects BoE Head King’s call for breaking up big banks
www.creditwritedowns.c...

Somehow this gets changed to something with England in it. Obviously someone doesn't know their geography (or history).

Apologies.


On Oct 22 09:40 AM CraigB wrote:

> Good article but I think you mean UK in the title rather than England.
> Minor point.. but mildly irritating for the non-English Brits amoungst
> us.