Mark-to-Market Datapoint of the Day

March 11, 2009

David Reilly crunches the numbers:

Of the $8.46 trillion in assets held by the 12 largest banks in the KBW Bank Index, only 29 percent is marked to market prices, according to my analysis of company data. General Electric Co., meanwhile, said last week that just 2 percent of assets were marked to market at its General Electric Capital Corp. subsidiary, which is similar in size to the sixth-biggest U.S. bank.

Given that loan-loss reserves haven’t remotely kept up with mark-to-market writedowns, it’s no wonder the market has serious doubts about the solvency of most US banks.

Reprinted from

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