[quote davelj]Forget about your last post. You’re putting the cart before the horse. There’s no point in discussing this further until you have the VERY basics down.[/quote]I wasn’t trying to get into a c**k fight here. I ‘yielded the floor’ to allow you to post the accurate rendition. This is ridiculous considering that you are taking me more to task than people who were claiming that the banks are making a mint off of the fed loans. I don’t know what your real point is here.. but here goes (unfortunately this posting interface doesn’t allow me to create tables.) REMEMBER: I did not say what those assets were from…
Cash & Equivalents = 100M(paid in capital, undivided earnings)
Securities
Loans
Other Assets
Total Assets = 100M
Deposits
Fed Borrowings
FHLB Borrowings
Other Liabilities
Total Liabilities
Common Equity = 100M
Followed by
Cash & Equivalents = 100M(paid in capital, undivided earnings) + 500M(proceeds from sale of issued bonds)
Securities
Loans
Other Assets
Total Assets = 600M
Deposits
Fed Borrowings
FHLB Borrowings
Other Liabilities = 500M(issued bonds)
Total Liabilities = 500M
Common Equity = 100M
NOTE: Bank bonds are often bought by.. pensions.
Of course I could have started with something like
Cash & Equivalents = 100M(paid in capital + deposits)
Securities
Loans
Other Assets
Total Assets = 100M
Deposits = 50M
Fed Borrowings
FHLB Borrowings
Other Liabilities
