Long lines and an odd numbering system led to a failure of interpersonal skills at some IndyMac branches. The defunct California bank is now administered by the FDIC.
While depositors at IndyMac banks in California do battle for a chance to get their cash out, financial analysts have been crunching the numbers to identify other troubled lenders. ABC News snuck a peek to come up with this handy guide to banks with an unfortunate “Texas ratio.”
That’s a measure of how strong a bank is based on the ratio of assets to bad loans.
Click here (alert: Word document) to skip to one list, compiled by a labor-funded research group.
While the Federal Deposit Insurance Corporation (FDIC) is keeping secret its official list of 90 troubled banks, ABC News has obtained other lists prepared by several research groups and financial analysts.
The lists use versions of the so-called “Texas ratio” which compare a bank’s assets and reserves to its non-performing loans, based on financial data made public by the FDIC in March.
Analysts say banks with a ratio over 100 per cent would be the most likely to fail, based on what happened to Texas savings and loans during the 1980’s.