Word: lowers
(lookup in dictionary)
(lookup stats)
Dates: all
Sort By: most recent first
(reverse)
...Capital cushion: The good news for Wells is that it has been aggressive in identifying problem loans - $37 billion from Wachovia alone. Wells officials argue that will lead to lower losses than its competitors'. But if not, the bank could be in trouble...
...Prognosis: On the way to the ICU. Citigroup has a projected leverage ratio of just 3.8% - far lower than what it would need to be considered well capitalized. How much would the U.S. have to give the bank to nurse it back to good health? About $22 billion...
...many of the same limitations apply to this part of the plan. Only interest payments will be lower, not principal balances. Homeowners who owe more than 105% of the value of their house - as is often the case in the worst-hit areas of the country - will be ineligible. And holders of jumbo loans need not apply. Again, that might reflect a sense of fairness - why should we help people who stretched beyond their means to buy McMansions? - but it ignores the facts that the delinquency rate among jumbo loans is spiking and that a foreclosed property hurts the value...
...stress test is also influenced by the measure you use. We chose the leverage ratio. To calculate it, divide a bank's equity by its assets, much of which are loans. The lower this ratio goes, the shakier a bank becomes. For example, a 10% leverage ratio means the bank has lent out $10 for every $1 in equity it has. A 5% reading translates to $20 out for every $1 in hand. Regulators like to see a reading of at least 5%. Anything less than that and a bank could become toast. Here's what we found...
...Jones Industrials closing below the market low set back in November 2008. The Dow had dipped below the November low earlier in the week but finished the day higher. Thursday's close below the November low is to some a confirmation of the market's bearish trend, implying lower prices ahead. The Dow index, which finished the day at 7465.79, is down 10% over the last eight trading days, and is also at a new five-year low. (See the top 10 Dow Jones drops of all time...