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Notes to myself, possibly of interest to others.
-- Bill Northlich

Thursday, July 21, 2011

Markets Know About About Banks' Bad Assets

At $9.85 a share, down 26 percent this year, Bank of America finished yesterday with a market capitalization of $99.8 billion. That’s an astonishingly low 49 percent of the company’s $205.6 billion book value, or common shareholder equity, as of June 30. As far as the market is concerned, more than half of the company’s book value is bogus, due to overstated assets, understated liabilities, or some combination of the two.
---Jonathan Wiel, Bloomberg Italics Ritholtz

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