What is a good Assets/Equity ratio for banks to have these days (Bear failed with 3%).

rvilmur answered one year ago …

Banks that are leveraged at 10 to 15 times are generally playing it safe. Most financial entities that have pushed the leverage to 25 times or higher have failed in the past due to random way off the norm events that blow up their 4% or less of equity.
So called "hedge" funds with high leverage also blow up because they really are not hedged and have made extreme one way bets. A true hedge is one that gives no net market exposure under current conditions. They need to be continually adjusted to keep that no net market exposure condition.