Is My Bank Gonna Croak, Too?


With the second-largest bank failure in US history, IndyMac last week, are you wondering if yours is gonna go next?

IndyMac Bank RunThe FDIC admitted they have 90 banks currently on their “watch list.” (No, they won’t let you see the watch list. They don’t want a panic.) 

In March the Federal Reserve added over 150 new bank examiners to their staff, anticipating a wave of failures.

Short of getting your hands on the “watch list” what can you do?

  1. Check out the FDIC’s list of failed banks here. (Five so far this year.)
  2. Check out your bank’s “Texas Ratio.” If it’s over 100 they could be going down soon. (The “Texas Ratio” is the ratio of a bank’s assets and reserves to its non-performing loans. The lower the number the better.)
  3. Look at your bank’s “Uniform bank Performance Report” here. If they’re loaded up on derivatives watch out.
  4. If your bank shows up on a list of troubled banks, move fast (it only took 10 days for IndyMac Bank to fail)
  5. If your bank, brokerage firm or finance company has a stock price of $10 a share or less, try and cut your exposure
  6. If the stock price is $5 or less, proceed as if the company’s days are numbered and get your money out.
  7. If a bank or brokerage firm has publicly denied rumors more than three times, consider them desperate and run. (Bear Stearns did this two days before they died.)
  8. If you ever hear a government official come out and say that an institution is fine, you know it’s time to get your money out because history shows they’re likely lying.  Look what happened with Fannie and Freddie.  The government said everything was fine right up to the day the US Treasury dropped the biggest government bailout of all time on the American taxpayer.
  9. Don’t expect anyone in a position of authority (government, business, mainstream media, etc.) to tell you the truth about how safe your bank is.
  10. Is your bank listed on this report of troubled banks provided by Research Assoc of America:

    Bank

    City

    State

    “Texas-ratio”

    Colorado Federal Savings Bank

    Greenwood Village

    CO

    244.8

    Eastern Savings Bank, FSB

    Hunt Valley

    MD

    222.7

    Integrity Bank

    Alpharetta

    GA

    191.6

    Ameribank, Inc.

    Welch

    WV

    153.7

    First Priority Bank

    Bradenton

    FL

    122.6

    First Security National Bank

    Norcross

    GA

    112.1

    Magnet Bank

    Salt Lake City

    UT

    110.4

    Security Pacific Bank

    Los Angeles

    CA

    102.8

    First National Bank of Brookfield

    Brookfield

    IL

    102.1

    The State Bank of Lebo

    Lebo

    KS

    100.6

You Have No Idea

◊◊◊◊ Now: Gold @ $960.00, Silver @ $18.56, USDX @ 72.09 ◊◊◊◊

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