Writedowns, Losses, and Capital Raised ~ market folly

Tuesday, September 16, 2008

Writedowns, Losses, and Capital Raised

Amid all the financial chaos, I thought it would be a good idea to post up a simple chart breaking down the financial landscape in terms of writedowns, losses, and capital raised. From Bloomberg, you'll see how institutions are looking in terms of raw numbers: writedowns/losses versus capital raised. One institution in particular I want to point out is HSBC (HBC): $27.4 billion in writedowns and losses, but only $3.9 billion raised. They by far have one of the more lopsided ratios. Now, we obviously know that this simple chart does not tell the whole story, but I thought it was worth highlighting.

(click to enlarge)

Full disclosure: At the time of publication, MarketFolly was short HBC via puts

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