Tuesday, April 21, 2009


I read an article on Bloomberg the other day where a Goldman analyst said that Citi, Bank of America, and JP Morgan are all carrying their commercial paper at 100% of face value. Meaning they have yet to write down a single dollar of these loans, since, you know, commercial real estate is safe.

Fun fact: If the banks would write down all of their "assets" to their true value, I could retire. I'm not holding my breath.

1 comment:

Konrad said...

"Morgan, one of the largest commercial real estate investors in the world, recorded $1 billion of net losses on real estate and a $1.5 billion accounting loss on its own debt, reflecting the rising value of Morgan Stanley credit this year."