DescriptionBank Common Equity to Assets Ratios 2004 - 2008.png
English: Common Equity to Total Assets Ratios for major U.S. banks
Source Data
The source data is from the 2008 annual reports of each company available on their website. There is a five year annual summary that contains the source data used. Note that Bank of America (unlike the others) averages its numbers.
A basis point is 1/100th of a percentage point. The concept of the gap analysis is to indicate how much additional common stock equity each bank would have to acquire to return to its 2004-2007 average ratio. Computation steps:
Identify the basis-point gap between the 2008 ratio and 2004-2007 average ratio.
Multiply the gap amount times the total assets of the bank. This shows the amount of additional capital required to return to the banks own pre-crisis averages.
The amounts are in millions. For example, Wells Fargo would require $46.6 billion to return to its pre-crisis level of common equity capitalization.
Alan Greenspan wrote in a March 2009 article that U.S. banks would require another $850 billion in his estimation, representing "an additional 3-4 percentage points of cushion in their equity capital to assets ratios."[1]
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2009-05-04 05:12 Farcaster 960×720× (12704 bytes) {{Information |Description = Common Equity to Total Assets Ratios for major U.S. banks |Source = Annual Reports of each entity |Date = May 4, 2009 |Author = ~~~~ |other_versions = }}
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{{Information |Description={{en|Common Equity to Total Assets Ratios for major U.S. banks<br/> ==Source Data== The source data is from the 2008 annual reports of each company available on their website. There is a five year annual summary that contains th