Thursday, January 15, 2009

TARP and Tangibles

Here's something interesting. We computed the IRA Tangible Equity Capital Ratios for Largest Bank Holding Companies
. The link takes you to an excel file containing four worksheets covering 3Q2008 and year-end for 2007, 2006 and 2005.

The technique for this requires rolling up the bank only assets of each of the units of a BHC to make the computation. We actually set the computers up to run the metric for all 5,000 or so bank holding companies for every reporting quarter we have in our databases. Naturally the popular press seems fixated on the top tier. The "Prime Solution" for the U.S. economy probably lies in deploying TARP money among the best of breed of the 5,000 though.

Enjoy the peek at the tip of the iceberg.

- Dennis

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