financial reality

Separating fact from fiction in finance and economics

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  • InLibrisLibertas
    Location : Mill Valley, California, United States

    I'm an independent investor. I make my living from the returns on my investments. I work at home, in the northern part of the San Francisco Bay area. I spent most of my career as an executive in high-tech, although I also spent time in banking. Down to one kid in university now!

Level 3

November 5th, 2007 by reality

Thanks to Nouriel Roubini for this little piece of analysis. Level 3 assets are the “mark to model” assets where the company is basically making up the valuations. Nouriel has noticed that the Level 3 asset to capital ratios for some of the leading Wall Street outfits show that the ones that have confessed their problems are those with the smallest problems. Hmmm. Here are the ratios, read Nouriel’s piece for the really gruesome details:

  1. Morgan Stanley 251%
  2. Goldman Sachs 185%
  3. Lehman Brothers 159%
  4. Bear Stearns 154%
  5. Citigroup 105%
  6. Merrill Lynch 38%

Posted in Fixed Income, Nouriel Roubini, Real Estate |

One Response

  1. sysin3 Says:
    November 5th, 2007 at 8:10 pm

    OMG. The top 5 are bankrupt, but they won’t admit to it. Scary stuff.

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