Level 3 Assets

The Balance Sheets of the WS brokers are not getting any better. GS and MS both revealed substantial increases to their Level 3 assets (Assets that are illiquid and hence hard to value-best guess at what they are worth). Goldman's surged 39% to 96.4 bln, increase the value of level 3 assets to 8.1% of total assets. Of course the off balance sheet items are not available and only GOD knows what and where they are. MS level 3 assets increased 6.1 % to 78.2 bln or 7.2 % of total assets. LEH actually reduced its level 3 assets from 6.1% to 5.4 %. Maybe GS and MS are 'helping' out their WS brethren and buying what they perceive as value. Time will tell.