This is a company with off balance sheet debt that is over 60% of its net assets, write-downs that are over 25% of net assets, and after-tax profits that have been declining.

FORBES: Zale Is No Diamond In The Rough

Raising capital, at a time when Lehman is trying to reduce the leverage on its balance sheet by shedding assets, suggests that additional big write-downs are coming.

FORBES: Lehman Shares Swoon On Write-Down Concerns

Well, if you're a bank, that's a big problem, because if the value of your assets is falling and you have to start doing all these write-downs, you know, you can't lend as much because banks have capital requirements.

NPR: U.S. Markets Wait Anxiously For Rescue Plan

Italy's Generali cut its dividend 56% after taking large write-downs on its Greek bond portfolio and other assets.

WSJ: What's News

In addition, CSCO has several signs of high-quality management: a top quintile return on invested capital ( ROIC) of 18%, few asset write-downs (less than 10% of net assets), and a compound annual growth rate for NOPAT of 26% over the past 10 years.

FORBES: Cisco Stock Still Undervalued, Earnings Better Than They Look

Traders are intensely focused on level 3 reported by the banks, because new accounting rules changing the way assets are valued kick in later this month and could fuel a new wave of write-downs.

FORBES

America's bail-out plan could even accelerate the pace of write-downs on structured credit if it sets a price below today's European valuations for nasty assets.

ECONOMIST: Are European banks insulated from the panic in America?