A bank's total risk-based capital is, basically, comprised of a bunch of liabilities, such as common shareholder equity, etc. You divide this number by total risk-weighted assets to get the ratio. Given their definitions, I have no idea how to relate either of these two numbers to book value...
Nobody understands it properly... But maybe we're getting closer:
http://www.bloomberg.com/view/articles/2016-07-28/answering-the-hardest-question-in-economics
In general, this is a very rich subject. One of the easiest explanations is based on what's known as the "golden rule". Specifically, over the long term real rates should be equal to steady state growth. Steady state growth, in theory, is a sum of population and productivity growth. Both are...
I promise that I will stop posting here if you just answer one simple question truthfully...
Are you or are you not the same person who used to post here under the name "botpro"?
You've clearly never been short a wing option in the middle of a proper sh1tstorm... Otherwise, you wouldn't be saying silly things like that.
Erm, it's very much technically possible, although probably not in a simulated mkt.
Damn, that's it! I couldn't quite put my finger on it, but the tone seemed somewhat familiar! Someone also mentioned "botpro", but I couldn't quite connect the dots.
Firstly, this article is a little weird. Book value is defined as assets - liabilities, so saying something like "Currently DB has roughly $2 trillion assets supported by $68 billion of book value" doesn't make a lot of sense.
Secondly, I am prepared to bet that what you read about DoucheBank...
Very tough to call... I have no special insight, so I would guess that they try to do a bit of everything.
You have to be careful. The headline number is kinda irrelevant, since what matters is what they call the "real water" component (i.e. actual deficit spending). That's supposed to be...
It's not that simple... The excess reserves that the commercial banks have sitting at the Fed are there for a reason. That reason is regulatory in nature. Basically, for a bank, reserves are the ultimate, most cost-effective HQLA (High Quality Liquid Asset) which satisfies their LCR...
Not front-running exactly, perhaps, but there are questions being asked about the treatment of retail orders by internalizing wholesalers, such as Citadel and KCG.
http://www.reuters.com/article/us-usa-stocks-probe-exclusive-idUSKCN0Y11CJ...