Regulatory ratios.
By this measure, there's no question that Bank of America is massive. At the end of the third quarter, it reported just under $2.2 trillion worth of total assets on its balance sheet, split between loans, interest-earnings securities, and a variety of other asset types. Yet, even though that's enormous, it's nevertheless smaller than one of Bank of America's principal competitors: JPMorgan Chase. Going into the financial crisis, JPMorgan was ranked third in terms of assets -- Citigroup was first, followed by Bank of America. Fast forward to today, however, and JPMorgan Chase is now the biggest bank in the United States, with $2.5 trillion worth of assets on its balance sheet -- click here for the full list of America's 10 biggest banks by assets.
if you measure size a slightly different way. Namely, by looking at the quantity of shareholders' equity, or capital, on their respective balance sheets.
When you measure size in this way, it turns out that Bank of America is actually the biggest bank in the United States. It has $270 billion worth of capital compared to JPMorgan's $254 billion. Citigroup and Wells Fargo round out the four biggest banks by capital, at $232 billion and $203 billion, respectively.
1:10 on Leverage.
So the recent swing in Reserve Assets of $400B would have to be covered by $40B of capital at this 1:10 ratio. About 4% of the four money center bank total capital.
Business Insider
Bank of America has the most capital of any bank in the US
6 comments:
Compare to DB's LR in this zH article
http://www.zerohedge.com/news/2016-09-29/how-much-liquidity-deutsche-bank-has-moment-and-what-happens-next
"Citigroup, among many other, that found how badly undercapitalized the German lender is, noting that DB's "leverage ratio, at 3.4%, looks even worse relative to the 4.5% company target by 2018"
It's probably all the denominator reserve assets piling up there from the constant trade surpluses with the EZ...
So they have the denominator constantly increasing meanwhile it is at a negative yield and they keep taking hits to numerator capital from all the punitive regulatory actions and they are in big trouble...
Too big to fail all over again. History repeats itself.
Why would you make them fail when the reason they are failing is they have too much deposits?
Failing because they have too many deposits ... something doesn't add up here.
It adds up ... the total assets are in the denominator... (talking about DB)
What are the components of those total assets? Have they been increasing?
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