Credit Analysis of Financial Institutes

Bear Stearns 1.Securities sold under agreements to repurchase increased 42 bil from 70 to 102 bil in 2007. The company seemed deperately borrowed money using collateral. JPM 2.Level 3, 28 bil out of 144 bil, almost 20%. GS only 7% 3.cash and cash equivalent, 20 bil, less than level 3 or mortgage exposure, $46 bil vs $39 in 2006. 4.facts asssts $395 bil, cap $3-4 bil 5.liquidity pool (excess liquidity 17 bil and net cash captal 8.2 bil) ~ $26 bil -->large level 3 and mortgage exposure, little capital cushion, market undweight Lehman Brothers 1.Securities sold under agreements to repurchase increased 24 bil from $126 bil to $150 bil. 2.level 3 5.4 bil out of 29 bil. 18% 3.cash and equivalent, $7.3 bil, larger than level 3, but less than mortgage and ABS exposure $89 bil (residentail 37 vs 27 in 2006, CMBS 39 vs 24.7 bil in 2006) vs $57 in 2006 4.facts assets $691 bil 5.liquidity pool $35 bil. --> large exposure to mortgage, market underweight