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A bank normally doesn't get to operate with negative capital.
Ms. Bair was concerned by Deutsche Bank's negative capital ratios when she was at the agency.
"We have seen negative capital gains exposure in pockets such as with emerging-market funds," Mr. Phillips said.
The average domestic equity fund now has negative capital gains exposure equal to 62.5percentt of assets, according to Morningstar.
Of the 3,308 domestic equity funds with capital gains data tracked by Morningstar, 88percentt, or 2,926, have negative capital gains exposure.
While negative capital doesn't matter much it doesn't look great; a central bank embarrassed by its capital deficiency might seek a capital injection from its finance ministry and be captured by boom-hungry politicians.
Similar(46)
Necessarily, agents face negative expected capital tax payments early in the life-cycle and positive expected capital tax payments late in the life-cycle.
This suggests that transactions which appear to represent negative social capital can, in some circumstances, be an indication of positive social capital as groups work collaboratively towards a common goal of social cohesion.
That arrangement, which analysts call "negative working capital," is unusual outside of grocery stores and allows Amazon to avoid the huge capital charges associated with buying and storing such a broad line of inventory.
Superannuation, negative gearing, capital gains tax should be on the table," Daley said.
MITCHELL: But everything is on the table – superannuation, negative gearing, capital gains, tax – everything.
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