SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : 50% Gains Investing
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Sam who wrote (69263)11/24/2008 10:16:23 AM
From: Keith FeralRead Replies (2) of 118717
 
It's good to put C out of it's misery. The new tier 1 ratio for C will be around 15% with all of the new money from the government. Hopefully, this deal keeps things from getting worse for the rest of the banking system, i. e. senior debt and preferred stocks.

Now, the question will be whether JPM or BAC needs any further support. One one hand, C had the highest leverage and they couldn't raise capital like the other banks.

I guess there are 2 camps of thought. C was the sickest of all the big banks which needed the most support. That much has been made worse since C had the weakest capital base. Now that C has a sufficient capital base of 15%, I guess the question is whether or not JPM and BAC have a strong enough Tier 1 capital level after the TARP injections.

It's good to see the government get out in front of this problem for C. It would be good to get a better handle on the Tier 1 ratios for BAC and JPM before making any more conclusions whether this was the last of the TARP injections for now.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2026 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News