Using a panel dataset on the post Basel-I period, I compare the evolution of leverage ratios between commercial and investment banks. I show that not only even commercial banks were highly leveraged before the 2007 crisis, but that the quality of their capital has been deteriorating at a much faster pace, when compared to investment banks. The paper explains why traditional measures of leverage cannot display this phenomenon, and proposes the ratio of book-value of assets over tangible common equity as a better measure.