Adjustments to Bank Balance Sheet Items

Here's a list of the categories I have backed out of the FDIC's Quarterly Banking Profile, along with a justification.

Loans to Depositories - These are loans to other banks. If that money then gets on-lent out into the real economy, it should be covered in another category (Credit Cards, C&I, Mortgages, etc.).

Loans to Foreign Govts. - I assume that, like Elvis, this money has left the U.S. real economy building. Negligible in any case.

Treasurys - If purchased from private holders, I assume the money is recycled into some other investment. If purchased directly from the government, it makes more sense to not count it here and to track change in total government expenditures.

Equities - If purchased from private holders, I assume the money is recycled into some other investment.

Cash and due from Depositories - Cash, and loans to other banks

Fed funds sold and reverse repos - Loans to other banks

Bank premises & fixed assets - I suppose this one is arguable, since it could indicate purchases of commercial property and capital equipment that sends funds back into the real economy

Other REO - These are typically actual assets recovered from foreclosures, an intermediate stage prior to a writeoff

Trading account assets - Financial instruments assumed to be purchased from other intermediaries, or from individuals who will not spend the proceeds into the real economy

Intangibles - Balance sheet entries that result from acquisitions, again purchased from other intermediaries, or from individuals who will not spend the proceeds into the real economy

Other - This is a fairly big category, and it's impossible to tell what's in it. If I was more energetic I'd probably try to figure out whether changes here could be getting out into the real economy. However, other than an increase in Q1 2010 that I assume was caused by FAS 166 and 167, it hasn't moved much over the past couple years.