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.
Technology Stocks : Semi-Equips - Buy when BLOOD is running in the streets!
LRCX 147.44-0.6%3:59 PM EST
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Ramsey Su who wrote (6072)6/28/1998 10:10:00 PM
From: Zeev Hed  Read Replies (1) of 10921
 
Ramsey, assets are assets and liabilities (like those deposit or loans from other banks) are liabilities and net tangibles are the assets less the liabilities. If that figure (net tangibles) is 5% (good enough for a domestic bank) and the potential loss is 5.7%, the losses come out of the net tangibles, and those go negative, that is when the bank goes belly up. One of the problems, of course, is that adequate reserves for bad loans were not taken out, and furthermore, the assets side of the equation includes real estate and stock at the value these were acquired, marking these to market, could also result in net assets becoming smaller than net liabilities, thus wiping out the net tangibles and with it the bank.

Zeev
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News