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Citi and BofA

By Anonymous

Paul Krugman is clearly confused. Regarding Citi and BofA, he writes:

Um, weren?t we being assured that recapitalization by the government ? which would probably require temporary nationalization ? was unnecessary, because the banks could earn their way back to adequate capital ratios?

Just saying.

Um, what? Is Krugman really that unfamiliar with quarterly earnings reports?

Citi's Tier 1 capital ratio is 12.7%. Citi's Tier 1 common ratio is 9.1%, up from 2.75% last quarter and 4.8% in Q3-2008.
BofA's Tier 1 capital ratio is 12.46%. BofA's Tier 1 common ratio is 7.25%, up from 6.9% last quarter and 4.23% in Q3-2008.

For frame of reference, JPMorgan's Tier 1 capital is 10.2%, and their Tier 1 common ratio is 8.2%.

Just saying.

Full post as published by Economics of Contempt on October 16, 2009 (boomark / email).