SPiELBERG-iNVESTMENTS* is a private capital venture that makes initial investments and investments in public traded companies exclusively in nanotechnology and nanobiotechnology, including nanoproducts, nanomaterials, nanoinstruments & industries benefitting from nanotechnology development. Detailed information about SI* and its portfolio companies or financial instruments can be found on its website at http://www.spielberg-investments.com.

SPiELBERG-iNVESTMENTS* is a private capital venture that makes initial investments and investments in public traded companies exclusively in nanotechnology and nanobiotechnology, including nanoproducts, nanomaterials, nanoinstruments & industries benefitting from nanotechnology development. Detailed information about SI* and its portfolio companies or financial instruments can be found on its website at http://www.spielberg-investments.com.

Morgan Stanley and Goldman Sachs have cut their leverage significantly. Citi is in a worse shape. Bank of America and Chase are treading water. December 30ths was the first balance sheet the banks have published since they received TARP capital. Common shareholders are still in a first-loss position relative to the government, however, because TARP investments were in the form of preferred shares. One Big caveat with this calculation is that these companies carry other assets on the balance sheet, some of which might be intangible in nature. Also, each has significant risk exposure via off-balance sheet entities. The point is, even though these leverage calculations seem high, they actually understate the risks facing common shareholders Citigroups leverage ratio of 56 means that the bank has $56 of assets for every $1 of common equity. If the value of those assets falls 2%, then common stockholders are wiped out. Here?s why: Assets = Liabilities + Equity. The formula is known as the accounting equation. Fundamentally, it shows how an asset (like a house) or collection of assets (like a company) is financed?either with borrowed money or your own, with debt or with equity. One side of the equation has to equal the other. If the assets fall in value, and not because cash was used to pay off a liability, then equity has to fall by an equal amount. If assets fall far enough, then equity falls below zero. A higher leverage ratio means greater potential for profit and loss on your initial investment.

This iChart shows the on-book assets of the various banks which are build up by intangibles and tangible assets.

This iChart shows the total equity of the various banks which are build up from tangible common equity, intangibles and preferred.

Consumer Credit Outstanding

Much of the current crisis has been caused by the banks' unwillingness to lend to each other, so the UK government has come up with a plan to inject billions of pounds in capital and to guarantee loans in the hope that lending will resume.

US Banks Usage of Bail Out Package. Approximately 1 month after the Financial Crisis Rescue Package has passed the US Congress nine American banks have used so far the bail out. As Merrill Lynch has been taken over by the Bank of America the merged bank is taking the bail out advantage.

Much of the current crisis has been caused by the banks' unwillingness to lend to each other, so the UK government has come up with a plan to inject billions of pounds in capital and to guarantee loans in the hope that lending will resume.