This didn't matter, because no one believed Lehman's capital was real.Ī financial advisor acheter orlistat 120 mg The simple answer to this is money for the wealthy elite that control all governments. The next time things get tough, will regulators once again practice forbearance and allow firms to overstate their capital, which has the perverse effect of making no one trust reported capital? Let's not forget Lehman, which according to Lehman had a very healthy Tier 1 ratio of 10.7 percent on and a total capital ratio of 16.1 percent. Or as Waldman writes, "Bank capital cannot be measured." Layer in some real world realities. Even hewing to GAAP and all regulatory requirements, thousands of estimates and arbitrary choices must be made to compute the capital position of a modern bank." In other words, even if you give bankers credit for good intentions, the accounting that would truly capture "capital" may not exist. Unfortunately, there is not one uniquely âtrue' model of bank capital. When we claim a bank or any other firm has so much âcapital,' we are modeling its assets and liabilities and contingent positions and coming up with a number. On his Interfluidity blog (which I found courtesy of Naked Capitalism), Steve Waldman writes, "Capital does not exist in the world. Best Site Good Work ibuprofen lysine vs ibuprofen Everyone seems to be ignoring the basic fact that capital isn't a pile of cash.
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