from Follow the Money

Just how much is $350 billion?

January 30, 2009

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Blog posts represent the views of CFR fellows and staff and not those of CFR, which takes no institutional positions.

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My colleagues at the Council’s Center for Geoeconomic Studies calculated that it was enough to buy most of the common equity of the US financial system -- at least on January 21.

That isn’t the best use of the TARP’s funds, but it does illustrate just how little common equity is now left to help support the financial sector’s large aggregate balance sheet.

Update: The book value of bank equity is of course higher. And the banks have other sources of regulatory capital.

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