Re: [Pen-l] Permanent nationalization of banks with debt-equity swaps

[fmoseley@xxxxxxxxxxxxx]

> raghu wrote:
>
> > Do you have numbers for what portion of a bank's liabilities are in
> > the form of debt? My understanding is this is extremely hard to
> > measure because most of these debt-like liabilities are in the form of
> > derivatives and swaps.

one limited source I have on this is from a paper at the AEA convention 
by Veronise and Zingales, available at:  
http://www.aeaweb.org/annual_mtg_papers/2009/retrieve.php?pdfid=520
On p. 36, there is a table of balance sheet data for 10 of the largest 
banks.  Citi is the largest and has the highest debt/deposit ratio:  .93
BoA is next with a ratio of .79.  Then JPMChase with .75.  etc.
There is also an "other liabilities" catgories which might be where the 
derivatives and swaps are.

The title of the paper by the way is "Paulson's Gift" [to the debtholders].

Fred


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