With the recent spike up in bank and financial company stock prices due to "losses being less than feared", it might be useful to look at what these losses really mean.

As I noted previously, JP Morgan's Tier 1 capitalization ratio is under 8%


From the link above, you can see that even within recent history it was around 8%, and the 7.79% ratio was BEFORE the August crunch hit.

This isn't so bad; Wells Fargo is at 7.9%, BofA at 8.52%, Citigroup at 7.9% through Q2 2007.

Of course, it is always instructive to look at historical Tier 1 cap ratios to compare, say again FY2002:
Bank                    Cap Ratio in 2007          Cap Ratio in Q3 2002
JP Morgan               7.79%                         8.6%
Wells Farg              7.9%                          7.84%
Bank of America         8.52%                         8.13%
Citigroup               7.9%                          9.5%
The point is not the ratio itself, but in the rate of change of the ratio (if any). As can be seen, some banks are experiencing significant cap ratio changes - whether this is due to bad loans or something else still remains to be seen.