Is The Next Domino To Fall.... Canada?
From the chart at Zerohedge
Tangible Common Equity -- A ratio used to determine how much losses a bank can take before shareholder equity is wiped out. From: Investopedia
As the chart below shows, which is a ranking of global banks by tangible common equity, lowest first, of the banks with a TCE ratio of under ~4% a whopping 30% are those situated in Canada, the same place where nobody thinks anything can go wrong, and which has been completely spared from the retribution of the bond vigilantes. Something tells us Canadian sovereign CDS, not to mention Canadian bank CDS, are both about to go quite a bit wider...
From the chart at Zerohedge
| Bank | TCE ratio |
|---|---|
| Canadian Imperial Bank of Commerce | 2.84% |
| National Bank of Canada | 3.30% |
| Bank of Nova Scotia | 3.37% |
| Royal Bank of Canada | 3.43% |
| Toronto Dominion Bank | 3.60% |
| Bank of Montreal | 4.19% |
Tangible Common Equity -- A ratio used to determine how much losses a bank can take before shareholder equity is wiped out. From: Investopedia
No comments:
Post a Comment