First, because most bank assets are illiquid and raising fresh equity is costly, banks should hold a buffer of liquid reserves to be able to cope with short-term losses. Second, equity capital should be significantly increased, so that if the value of the banks’ assets were to decline, ...
In our opinion, a significant portion of HK’s formerly ‘approved’ gas reserves more likely than not was overdue for downgrading to ‘contingent’ resources by the time of their sale to BHP. In ball park terms, that’s the difference between gas assets that can be produced commercially at...
“At the end of each quarter, Bear would lower its leverage ratio by selling assets, only to buy them back at the beginning of the next quarter. Bear and other firms booked these transactions as sales—even though the assets didn’t stay off the balance ...