Talk:Common equity

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I think the redirect to stock is going to become a problem. The 13 Sept 2010 Wall Street Journal has a front page article about the new banking regulations. It uses the term "Common Equity". I think it is clear from the article that the terms common equity and stock are not equivalent. We need an expert to come in and write an article here. John5Russell3Finley (talk) 14:30, 13 September 2010 (UTC)[reply]

Best guess as to the use of the term: The 2010 Sept 13 pp 1-2 article talks about "common equity": 1)Appears to be a type of "cash equivalent" 2)7% of the banks money is to be reserves which are to be made of "common equity"

My guess is that Common Equity includes: 1)Cash 2)other cash equivalents convertible to cash within a specific time period, A quick googling does not improve my knowledge here. John5Russell3Finley (talk) 14:57, 13 September 2010 (UTC)[reply]

Began New Article: There was enough hooplah about it on the news yesterday that it seemed to me we needed to have an article about this term. Today I removed the redirect and bagan the article as a stub.John5Russell3Finley (talk) 11:18, 14 September 2010 (UTC)[reply]

Wall Street Journal 20100913 p. A2 col. 4 "Regulators Agree to Put New Constraints on Banks": "Regulators agreed to hold a specific level of a basic type of capital known as 'common equity.' Common equity is considered the most effective form of capital because it is used to directly absorb losses. Officials agreed large, internationally active banks will have to hold levels of common equity equal to at least 7% of their assets..."John5Russell3Finley (talk) 11:05, 14 September 2010 (UTC)[reply]

WSJ 14 Sept had a change in the wording calling it Tier 1 in combination with the term common equity. Perhaps the author of one of the articles was confused ? WSJ is not what it used to be... The article here about Basel III calls the requirment tier 1 and it is looking perhaps like just some silly smoke and mirrors change of wording government snow scheme ? My understanding of reserves is that it would be types of assets (gold, specie, stock certificates/ownership...), and this is looking less like that, and maybe more just who takes the hit...so perhaps we really need an expert here. I added a link to Basel III and (per request) added category Banking, which I think maybe could instead be better if we had a category called banking terms ? I also removed the tag.John5Russell3Finley (talk) 17:14, 16 September 2010 (UTC)[reply]