[lbo-talk] more on ADIA-C

Willy Greenfields filthydirtyunwashed at yahoo.com
Wed Nov 28 09:15:42 PST 2007


Jordan wrote re: C:


>Their Tier-1 ratio has dropped from 8.6% to 7.3%, but
>it's still well above the 6% that's required.

Their disclosed target is 7.5%, so assigning the entirety of the ADIA investment to Tier 1 gets them well above. They seem to be budgeting for substantial future losses chewing up regulatory capital, near-ish term growth of the balance sheet, or both.

Guy I work with thinks it's an admission that the MLEC/Super SIV is dead in the water and that C will be bringing the last $80BB of their SIVs onto the books.

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