Goldman Sachs 2009 Annual Report Download - page 63

The following table sets forth where a discussion of off-balance-sheet arrangements may be found in this Annual Report:
Type of Off-Balance-Sheet Arrangement Disclosure in Annual Report
Retained interests or other continuing involvement relating to assets See Note4 to the consolidated  nancial statements.
transferred by us to nonconsolidated entities
Leases, letters of credit, and loans and other commitments See “— Contractual Obligations” below and Note8 to the
consolidated  nancial statements.
Guarantees See Note8 to the consolidated  nancial statements.
Other obligations, including contingent obligations, arising out of See Note4 to the consolidated  nancial statements.
variable interests we have in nonconsolidated entities
Derivative contracts See “— Critical Accounting Policies” above, and “— Risk
Management” and “— Derivatives” below and Notes 3 and 7
to the consolidated  nancial statements.
In addition, see Note2 to the consolidated  nancial statements for a discussion of our consolidation policies and recent
accounting developments that affected these policies effective January 1, 2010.
Equity Capital
The level and composition of our equity capital are determined
by multiple factors including our consolidated regulatory
capital requirements and an internal risk-based capital
assessment, and may also be in uenced by rating agency
guidelines, subsidiary capital requirements, the business
environment, conditions in the  nancial markets and
assessments of potential future losses due to adverse changes
in our business and market environments.
Our consolidated regulatory capital requirements are
determined by the Federal Reserve Board, as described
below. Our internal risk-based capital assessment is designed
to identify and measure material risks associated with our
business activities, including market risk, credit risk and
operational risk, in a manner that is closely aligned with our
risk management practices.
As of December2009, our total shareholders’ equity was
$70.71billion (consisting of common shareholders’ equity
of $63.76billion and preferred stock of $6.96billion). As
of November2008, our total shareholders’ equity was
$64.37billion (consisting of common shareholders’ equity
of $47.90billion and preferred stock of $16.47billion).
In addition to total shareholders’ equity, we consider our
$5.00billion of junior subordinated debt issued to trusts
to be part of our equity capital, as it quali es as capital for
regulatory and certain rating agency purposes.
Consolidated Capital Requirements
The Federal Reserve Board is the primary U.S. regulator of
Group Inc., a bank holding company that in August 2009 also
became a  nancial holding company under the U.S. Gramm-
Leach-Bliley Act of 1999. As a bank holding company, we
are subject to consolidated regulatory capital requirements
administered by the Federal Reserve Board. Under the Federal
Reserve Board’s capital adequacy rules, Goldman Sachs must
meet speci c capital requirements that involve quantitative
measures of assets, liabilities and certain off-balance-sheet items
as calculated under regulatory reporting practices. The  rm’s
capital levels are also subject to qualitative judgments by its
regulators about components, risk weightings and other factors.
Goldman Sachs 2009 Annual Report
61
Management’s Discussion and Analysis