Thursday, April 30, 2009

What Does the Market Think of BofA and Citi?

First, some data on BofA and Citibank:

Bank of America
Net Equity (as of end of March 2009) = $ 240 Billion
Market Capitalization (as of Apr 30, 2009) = $57.16 Billion

Citibank
Net Equity (as of end of March 2009) = $ 144 Billion
Market Capitalization (as of Apr 30, 2009) = $16.81 Billion

One explanation for these numbers, besides a cash flow problem,  is that the market believes that some of their underlying assets are incorrectly valued. 

2 comments:

  1. Makes since...they probably have a bunch of bad receivables sitting on their books they don't want to devalue.

    ReplyDelete
  2. http://www.google.com/publicdata?ds=usunemployment#met=unemployment_rate&tdim=true

    ReplyDelete

What is the best method for stimulating the economy?