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US Bank Derivative Exposure

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US Bank Derivative Exposure

Unread postby billg » Thu 11 Dec 2008, 21:47:27

8O 8O 8O Can anybody here explain the significance of these numbers?

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Re: US Bank Derivative Exposure

Unread postby r101958 » Thu 11 Dec 2008, 22:17:14

The figures mean that these banks are way over leveraged and don't have the capitol required to cover their liabilities. I believe the last column on the right shows the spread between what is being required for these companies to sell bonds and a regular corporate bond offering. I may be wrong on that part though.
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Re: US Bank Derivative Exposure

Unread postby r101958 » Thu 11 Dec 2008, 22:33:49

I also believe that the 2338 (2,338 basis pts) that you see over on the right means 23.38 %...so this bank is having to pay 23% more for money than regular risk based bonds. I believe that bank will be listed on the FDIC bankrupt list soon.
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