...Deferred tax assets (DTAs) for U.S. banks in Fitch's rated universe grew in dollar terms by nearly 300% over the 12-month period ended June 30, 2009; they now comprise on average 10.7% of equity and a median 5.7% of equity. In light of this growth, combined with a difficult operating environment, the vulnerability of DTAs to writedowns has increased. In particular, Fitch identified two related risks: a GAAP capital impact from the creation of valuation allowances and a regulatory capital impact from disallowed DTAs. Fitch views both of these risks as moderate in aggregate at this point; yet, as banks continue to boost provisions for expected loan losses, the temporary loan loss- related differences will grow DTAs. The uncertainty surrounding companies' operating performance, coupled with the higher the level of DTAs, increases the risk that certain banks will need to write down the DTA and/or have the DTA disallowed from regulatory capital. Both of these factors will be monitored by Fitch...
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| Report Type: | Special Report
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| Company(ies): | First National of Nebraska, Inc., Old National Bancorp, Morgan Stanley, State Street Corporation, Central Pacific Financial Corp., Fulton Financial Corporation, Zions Bancorporation, JPMorgan Chase & Co, M & T Bank Corporation, AmeriServ Financial, Inc., First Horizon National Corp., City National Corporation, First Commonwealth Financial Corporation, BOK Financial Corporation, American Express Company, Whitney Holding Corporation, Marshall & Ilsley Corporation, Mercantil Commercebank N.A., Citigroup Inc., Cathay General Bancorp
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| Ticker(s): | UCBH , WTBFA , CYN , FULT , AMFI , MS , PNC , CPF , BOKF , STT , GS , RF , COF , FINN , AXP , FCF , WTNY , C , JPM , MTB
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| Issuer: | W.T.B. Financial Corporation
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| Free Sample: |
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| Format: | | PDF |  |
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