10 Troubled BanksWhile 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."
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.
Wait, before you go…
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.
If you're reading this, you probably already know that non-profit, independent journalism is under threat worldwide. Independent news sites are overshadowed by larger heavily funded mainstream media that inundate us with hype and noise that barely scratch the surface. We believe that our readers deserve to know the full story. Truthdig writers bravely dig beneath the headlines to give you thought-provoking, investigative reporting and analysis that tells you what’s really happening and who’s rolling up their sleeves to do something about it.
Like you, we believe a well-informed public that doesn’t have blind faith in the status quo can help change the world. Your contribution of as little as $5 monthly or $35 annually will make you a groundbreaking member and lays the foundation of our work.Support Truthdig
There are currently no responses to this article.
Be the first to respond.