Tyler Durden
Jonathan Weil over at Bloomberg is on to something, yesterday pointing out the dramatic disparity not only between Regions Financial (RF) loan portfolio Carrying Value (at what value the firm has them marked on the balance sheet) as opposed to their disclosed Fair Value Estimate (i.e., what the real value of all those toxic loans is).
The math: the bank has overvalued its loan portfolio by $22.8 billion dollars: with a June 30 carrying value of $90.9 billion and an estimated fair value of $68.1 billion. Compare this real $22.8 billion shortfall between mark-to-myth and reality and the firm's $5.9 billion market cap, or to its disclosed June 30 shareholders' equity amount of $18.7 billion: by all measures RF should be either bankrupt or in conservatorship.
Regions Financial: Sitting on a $22.8 Billion Sink Hole? -- Seeking Alpha
