Footnotes1. The following instruments would have been classified as "equally safe" before the 2008 financial crisis: repurchase agreements, asset-backed commercial paper, auction rate securities, tender offer bonds, and variable debt obligations. 2. 35% is derived by dividing $141 billion (daily repo financing)* by $399 billion (total assets at the end of February 2008)**.
* (Gorton & Metrick, 2010)
** (Bear Stearns Companies Inc., 2008) 3. 42% is derived by dividing $269 billion (daily repo financing)* by $639 billion (total assets at the end of May 2008)**.
* (Gorton, G. & Metrick, A., 2010)
** (Lehman Brothers Holdings Inc., 2008) Sources Bear Stearns Companies Inc. (2008, Feb. 29). Quarterly Report. Gorton, G. & Metrick, A. (2010). Securitized Banking and the Run on Repo (NBER Working Paper No. 15223). Cambridge, MA: National Bureau of Economic Research. Lehman Brothers Holdings Inc. (2008, May 31). Quarterly Report. U.S. Senate, Committee on Banking and Currency (1931). Operation of the National and Federal Reserve Systems: Hearings on S.R. 71, Part I (p.66). Hearings before a Subcommittee of the Committee on Banking and Currency, 71 Congress, 3rd session. Washington, D.C.: United States Government Printing Office.