"Tangible assets, which don't include goodwill or intangibles, are 55 times the bank's tangible equity .... Citi's leverage worries some investors. Furthermore, possibly making matters worse are proposed accounting-rule changes that, if adopted, will prompt banks in 2010 to bring some off-balance-sheet assets back onto their books.
Tangible assets rise to nearly 59 times tangible equity if Citi has to bring about $120 billion in credit-card assets back onto its books in 2010, as is likely. Citi also may have to consolidate some of the roughly $670 billion in mortgage assets currently held by off-balance-sheet vehicles.
If the bank had to consolidate just 20% of these mortgage assets, tangible assets would rise to about 63 times tangible equity.
Reilly, David. 2008. "Job Losses Won't Cut It for Citigroup." Wall Street Journal (18 November): p. C 10.