[quote=sdduuuude]
1.5x all chargeoffs in the last 4 years ! Wow. That aint good. [/quote]
OK, Meredith Whitney’s a good analyst. Despite the fact that she’s been steamrolled in this rally. (Lots of smart folks are in the same situation, so I don’t hold that against her). And the fact that NPAs are 1.5x cumulative charge-offs since 2005 isn’t a good thing, but…
I’m curious… why do you, sdduuuude, think this is a problem? In other words, forget that Meredith Whitney told you it was a problem. If YOU saw this figure amongst a bunch of others, why would it concern you?
In answering the question, a discussion of reserve methodology for NPAs is required. Also, what is the normal relationship between NPAs and historical charge-offs?
