Citigroup's Level 3 Assets Were $572 Billion in Third Quarter
Citigroup's Level 3 Assets Were $572 Billion in Third Quarter Citigroup's Level 3 Assets Were $572 Billion in Third Quarter By Bhattiprolu Murti Citigroup, Goldman Sachs Group, Lehman Brothers, Morgan Stanley, Bear Stearns, Merrill Lynch Goldman Sachs Group Incsaid Wednesday the size of its level 3 assets at the end of third quarter increased to $572.05 billion from $54 billion at the end of the second quarter.
In terms of percentage, the New York-based investment bank's third-quarter level 3 assets amounted to 7% of the total assets, compared with about 6% at the end of the second quarter.
Level 3 assets are those that trade so infrequently that there is virtually no reliable market price for them, and valuations for these assets are based on management assumptions.
What you posted does not appear to be accurate. Are you saying $54.2 billion or $542 billion? C,LEH, MS, BSC, MER, GS increased their level 3 assets by over $500 billion in one quarter? Decimal places mixed up?
Assets that trade infrequently are not necessarily worthless. Banks loan on many assets that trade infrequently. Real estate, businesses, equipment. The underlying paper may be performing perfectly well but not trade often.