[quote=davelj]Your equations above are meaningless because you don’t know what reserves or charge-offs have already been put up against the NPAs.[/quote]
Actually, I did. The quote continues. Here is the part I did not include ….
[quote=Meredith]There’s huge growth in non-performing assets. These are numbers, apples-to-apples, on the four big banks. The issue is when does that stuff that’s not paying come to market, and when do banks recognize the chargeoffs? I think you’re going to see more of that in the second quarter and the third quarter. Does the supply move in the second quarter and then you report it in the third quarter? The timing may be weighted more to the third quarter. I just don’t know.[/quote]
So, if Meredith is to be trusted, it’s pretty clear that those NPAs have not yet been charged off.
