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Bank Valuation: Understanding Key Ratios and Metrics

Tom Spencer

In the previous article , we looked at how banks make money and how they must meet capital requirements. However, P/B has generally become a measure that is less useful than it was in the past since banks’ balance sheets are not as important as they used to be in determining earnings power. We will examine each in turn.

Metrics 88
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ECB's €40bn Stimulus Gamble: ECB Pulls Out Bazooka, Cuts Rates, Buys Assets; Will this Stimulate Lending?

MishTalk

The detailed modalities of these programmes will be announced after the Governing Council meeting of 2 October 2014. The newly decided measures, together with the targeted longer-term refinancing operations which will be conducted in two weeks, will have a sizeable impact on our balance sheet. in 2014, 1.1% in 2015 and 1.4%

Banking 74
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Shockingly Bad Fiscal Health of Chicago (and the Financial Engineering Chicago Uses to Hide that Fact)

MishTalk

For the sake of comparison, Chicago has around $7.2 Of course, Chicago would also have to meet the other eligibility criteria. It is not a balance sheet test, but a cash flow test. According to the Chicago Tribune , “since 2000, the city has used $3.6 Of that amount, half will end up costing taxpayers in the long run.”

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Reflections on 2013; What's Important, What's Not? What's Ahead?

MishTalk

Had I suggested in 2007 that the Fed balance sheet expansion of $75 billion a month would have been considered "tightening" people would have thought I was nuts. For example, Meet "Baxter" the Robot Out to Get Your Minimum-Wage, No Benefits, Part-Time Job. At long last, the Fed has finally started to taper. Here we are.