Posted on 07/16/2012 10:37:44 PM PDT by STARWISE
The following institutions, grouped by state, boast perfect scores using a method developed to diagnose failing banks.
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The relationship Americans have with their banks used to be based on trust.
As well it should be. In many ways, banks make some of our biggest financial dreams come true.
We go to the bank when we want to buy our dream home, and again when we remodel the kitchen. Our bank helps us buy that great new car we've been thinking about. When we retire, the bank turns a lifetime of savings into income by paying us interest on money-market and savings accounts, and on certificates of deposit.
We trust banks to protect our hard-earned money. We expect that every dollar we put into our bank will be held safe until we come back for it.
But what if the bank doesn't deserve our trust?
In America, we have let our guard down in our banking relationships. We assume that everything will be fine if our bank fails. After all, the Federal Deposit Insurance Corp. insures our deposits up to $250,000. Why worry?
I hate to be the one to break this to you, but the FDIC's Deposit Insurance Fund -- aka the money used to cover bank failures -- has been all but drained.
(Excerpt) Read more at money.msn.com ...
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ONLY ONE Bank in Oregon....PING!!!
LOL
I should get one for my brother’s birthday.
great idea.
I know! LOL
Where’s “Fred’s Bank”?
“Hi, I’m Fred, I have a bank, you got $1500, I’ll put here … in my white suit. White suit pocket.”
Ping!
Blast fromt he past. Haven’t heard that line in quite some time. I still have the album...what I don’t have is a turntable.
Helpful advice! Thanks!
GULP....I don’t see SunTrust on Maryland’s list....:(
Where Whitey Bulger keeps his money?
No, with a name like that, they have to be really, really, really honest.
Why are we trusting an MSN list of safe banks?
Was this list made up by libs for their lib friends who are milking these banks?
In the article, they link to
http://www.investinganswers.com/financial-dictionary/ratio-analysis/texas-ratio-2619
which explains the formula and notes this at the end of the piece:
Why It Matters:
The Texas ratio takes into account two important factors in a bank’s health: the number of bad loans it’s made and the cushion the bank’s owners have provided to cover those bad loans (i.e. common equity).
If too many of the bank’s loans are nonperforming (as described by the Texas ratio’s numerator), the bad loans will erode the bank’s equity cushion, which could cause the bank to fail.
Likewise, if there is not enough equity in a bank (as described by the Texas ratio’s denominator), the bank will not be able to absorb very many bad loans and the bank will fail.
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Judge for yourself.
Thanks!!
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