Goldman Sachs : Level 3 Assets were approximately $ 66 billion as of November 2008 ( down from $ 68 billion as of August 29, 2008 ) and represented 7,5 % of total assets Morgan Stanley : level 3 assets were $ 78,4 billion as of 31 August 2008 8% of total assets Merrill Lynch : level 3 assets $ 61 billion, 7 % of total assets as of Nov 5th 2008 JP Morgan : as of 31.12.2008 6 % of total assets represent level 3 assets Wells Fargo : couldn´t find any figures as % of total assets
These numbers are tiny compared to the amount of money that has been thrown at these banks. What gives?
Citi said their capital ratio`s were fine, then needed to sell profitable assets for capital raising. They are either lying about what`s on their books, or the problems are far worse than just level 3 assets. I think it is a combination of both those, and their profit models with deleveraging, have come back so much that they have to rework the models to account for much lower revenue coming in. In other words, their liabilities looked much smaller based upon steroid revenue models of 40 times leverage in a DOW 14,000 Bull Market, Private Equity Deals, and asian expansion of Modern US Financial Instruments.
So, gentlemen anybody still recalling how many level 3 assets are hidden in US banks´ balance sheet ? Or do we forget this calamity ?