IB 60x

Attached is MF Global's most recent 10Q. It looks like the way their leverage was reported in the press was based simply on their total liabilities ($44.4B) and their total stockholder equity ($1.39B). If we compare apples to apples, would we do the same for IB, which has $28.0B in liabilities and $488M in equity? Even if you trim the numbers, their leverage is still way higher than other brokers and investment banks.

I'm not trying to stir up any panic. I have a big account their, so I want to get at the bottom of this as well.
 
Quote from catmango:

Attached is MF Global's most recent 10Q. It looks like the way their leverage was reported in the press was based simply on their total liabilities ($44.4B) and their total stockholder equity ($1.39B). If we compare apples to apples, would we do the same for IB, which has $28.0B in liabilities and $488M in equity? Even if you trim the numbers, their leverage is still way higher than other brokers and investment banks.

I'm not trying to stir up any panic. I have a big account their, so I want to get at the bottom of this as well.
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1st step is to learn accounting
. there are different kind of liabilities which are offset by assets. does ib have the same exposure as mf global on mark to market accounting?
2nd step is to prove assertions:Even if you trim the numbers, their leverage is still way higher than other brokers and investment banks. u have not provided a table to prove your point. 2ndly what do mean about trimming numbers?

3rd step and perhaps more importantly is to show a little humility in order to be taken seriously. you don't have the power to stir up panic.
 
Quote from trading spaces:

So what is the calculation?
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Brokerage firms/Investment banks are black boxes. You never know what is inside them. Even the most insiders don't know what kind of toxic assets they are holding onto till it implodes.

But, IB for sure is a bloated pig that will be be a roadkill depending on how the whims of the financial markets play out.
 
Not sure where zdreg's animosity comes from. I guess posting over 6600 times on this messageboard instead of doing any real trading makes him feel like an expert trader who owns ET.
 
Assuming IB's customer assets are segregated IB leverage ratio is 18x according to my calcs(stripping out all assets from customers and liabilities to customers). And thats dividing by the $500M figure which is not fair given that customers and creditors would be entitled to the 'Non-controlling interests' equity as well, counting that the ratio is 2.2x to 1. Seems pretty safe to me
 
Quote from catmango:

Not sure where zdreg's animosity comes from. I guess posting over 6600 times on this messageboard instead of doing any real trading makes him feel like an expert trader who owns ET.
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you have a short fuse. you are obviously lacking in humility if u claim u can stir a panic.

there's no animosity on my part. your statement speaks for itself. it consists of no verifiable facts and a claim that u have an ability to create to panic.

I have never claimed to be an expert trader and of course you are cluelss to the number of trades i do per day or if i spend the entire day trading. many successful traders only a few hours a day for your fyi. people who are quick to personalize without an iota of proof fit into the category of loser.
 
Quote from zdreg:

you have a short fuse. you are obviously lacking in humility if u claim u can stir a panic.

there's no animosity on my part. your statement speaks for itself. it consists of no verifiable facts and a claim that u have an ability to create to panic.

I have never claimed to be an expert trader and of course you are cluelss to the number of trades i do per day or if i spend the entire day trading. many successful traders only a few hours a day for your fyi. people who are quick to personalize without an iota of proof fit into the category of loser.
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lol. 6600 posts = loser
 
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