Barclays announced plan to raise more capital:<\/p>\n
[http:\/\/group.barclays.com\/Satellite?blobcol=urldata&blobheader=application%2Fpdf&blobheadername1=Content-Disposition&blobheadername2=MDT-Type&blobheadervalue1=inline%3B+filename%3DBarclays-PLC-2013-Interim-Results-Statement-PDF.pdf&blobheadervalue2=abinary%3B+charset%3DUTF-8&blobkey=id&blobtable=MungoBlobs&blobwhere=1330701422600&ssbinary=true<\/a>]<\/p>\n This got me thinking to look at the equity in Banks<\/span>.<\/p>\n Look at the balance sheet of our large banks, something that jumps out, is the difference in low levels of equity compared to level of debt (liabilities). It is totally unique to banks.<\/p>\n Take HSBC<\/strong>, the annual report [http:\/\/www.hsbc.com\/investor-relations\/financial-results<\/a>] page 374. Total shareholder equity=\u00a0\u00a3183,129 million = \u00a3183 Billion<\/strong><\/p>\n Total liabilities\u00a0\u00a0\u00a0=\u00a0\u00a0\u00a32,509,409 million = \u00a32509 Billion<\/strong><\/p>\n HSBC Equity:Liabilities Ratio = 0.07<\/strong><\/p>\n Take Barclays the annual report [http:\/\/group.barclays.com\/about-barclays\/investor-relations\/annual-reports<\/a>] page 233<\/p>\n Total shareholder equity= \u00a362,957 million = \u00a362 Billion<\/strong><\/p>\n Total liabilities\u00a0\u00a0\u00a0 =\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a31,427,364 million = \u00a31427 Billion<\/strong><\/p>\n Barclays Equity:Liabilities Ratio = 0.04<\/strong><\/p>\n Then look at other industries: Telecoms<\/span>.<\/p>\n Vodafone, the annual report [http:\/\/www.vodafone.com\/content\/index\/investors\/investor_information\/annual_report.html<\/a>] page 95<\/p>\n Total shareholder equity =\u00a0\u00a0\u00a378,202 million = \u00a378 Billion<\/strong><\/p>\n