Browsing Tag

accounting

Wave of regional bank write-offs?

I have posted a few times on the problem surrounding an imminent writedown wave for commercial real estate (CRE) and construction loans in the US. A few days back, I had intended to post more about regionals. The Wall Street Journal had a…

Barclays taps Sovereign Wealth Funds

The Sunday Telegraph is reporting yet another major Western bank is going cap in hand to sovereign wealth funds in order to stave off the inevitable crisis. This time its Barclays, Britain's third largest bank. At a time when RBS is…

Additions to Credit Crisis Timeline

Latest Additions2008 05 26 UBS Falls After Saying More Mortgage Losses Possible2008 05 27 Banks, Brokers Cut 83,000 Jobs as Subprime Losses Mount: Table2008 05 28 Ambac shares hit record low after new disclosure2008 05 28 KeyCorp Slide…

De-leveraging redux

Yesterday, in a post entitled "De-leveraging," I argued that credit writedowns and the resulting deleveraging are highly deflationary. This is the core of the problem with the global financial system. I want to expand a bit on that…

Is Lehman the next Bear Stearns?

The Globe & Mail is reporting that Lehman Brothers might have to go back to the capital raising trough again in order to shore up a leveraged and risky balance sheet. In the face of yesterday's credit downgrade by S&P, this sounds…

De-leveraging

The term deleveraging is one bandied about a lot in the press recently. But, what does it actually mean? De-leveraging is the process by which financial institutions and investors reduce the relative size of their assets to equity ratio.…

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