Author Topic: Is your bank or insurerer on these lists?  (Read 19433 times)

Offline shadowalker_returns

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Is your bank or insurerer on these lists?
« on: October 05, 2009, 12:01:44 PM »
If so you may need to better protect your financial life. I know we have a financial section but for me my financial health is a critical aspect of my Emergency Preparations. Mods.. if you want to move this post that's fine by me. May we also consider making it an easy to find sticky somewhere and I'll try to update the list or links every 3-4 months...

Banks & Thrifts Graded D+ or worse (does not include Credit Unions):

http://www.moneyandmarkets.com/files/documents/X-List.htm#Toc211675100


Insurers Rated D+ or lower:

http://www.moneyandmarkets.com/files/documents/X-List.htm#Toc211675104

I'll endevor to keep these links updated once a quarter.

If this topic's been covered. My apologies. Last week I changed banks because of these ratings. I used to check on my bank's rating every year or so but let it slip.. Guess i need to be a little more on the ball about those check-ups. Most banks and insurers that fail were known to be in poor shape (D or worse) long before there failure. I am not predicting any given failure, just advising that these institutions are showing the preliminary signs of failure. Are you one of their customers?

Regards,
Shadowalker

Offline mamabear

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Re: Is your bank or insurerer on these lists?
« Reply #1 on: October 05, 2009, 12:49:00 PM »
I have a credit union. How does one find out what the rating is of a credit union?

Offline shadowalker_returns

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Re: Is your bank or insurerer on these lists?
« Reply #2 on: October 05, 2009, 05:55:32 PM »
I have a credit union. How does one find out what the rating is of a credit union?

Yes there is but I need a couple of qualified recommendations before I post links on it. I put in a call to the people I go to for this type of data. They usually get back to me in a couple of days. Check this thread on Thursday or Friday. I should have posted a reply to your question by then.

Regards,
Shadowalker

Offline mamabear

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Re: Is your bank or insurerer on these lists?
« Reply #3 on: October 05, 2009, 08:28:55 PM »
thanks. I do not want to switch if i don't have to as pretty much every bank in my area was on that list, although not my insurance company.

Offline Cacinok

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Re: Is your bank or insurerer on these lists?
« Reply #4 on: October 06, 2009, 12:03:56 PM »
nope and nope.  i set up my banking and insurance w/ smaller, regional, companies b/c of the better service and more conservative business practices. 

Offline shadowalker_returns

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Re: Is your bank or insurerer on these lists?
« Reply #5 on: October 16, 2009, 09:55:00 AM »
I have a credit union. How does one find out what the rating is of a credit union?

Mamabear, I apologize for taking so long to get back to you. Finding a finding an independant and verified listing of Credit Unions status is a bit more difficult than banks... I'm short on time and I'll need a bit more to dig through all the data I have before I will trust all the data. I have found two sources that you can try that are also considered by my sources as reasonably accurate. Your CU should rate four or more stars. If not find a new CU.

http://www.bankrate.com/rates/safe-sound/bank-ratings-search.aspx

http://www.bauerfinancial.com/btc_ratings.asp?q=cu

I'm still looking for better data. When I find it I'll post here to provide a list for CU users as well as Bank anad Thrift users.

Regards,
Shadowalker

Offline mamabear

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Re: Is your bank or insurerer on these lists?
« Reply #6 on: October 16, 2009, 10:21:05 AM »
Yikes, my CU has a two star rate on the first one and a three star rate on the second one. One of the other CU's in my town doesn't even show up and the last one locally that I can recall is here is a five star. Guess where my money will be going? ;) 
Thanks so much for the links.

Offline BIG-TARGET

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Re: Is your bank or insurerer on these lists?
« Reply #7 on: October 17, 2009, 08:08:17 PM »
I lucked out!  Sun National is NOT on the list! ;D

Offline NightOwl

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Re: Is your bank or insurerer on these lists?
« Reply #8 on: October 20, 2009, 09:03:02 AM »
I wonder how insurance companies will be doing as some of their investments come back.

Both of my credit unions are in great shape according to those links...

Offline lzhome

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Re: Is your bank or insurerer on these lists?
« Reply #9 on: October 29, 2009, 05:42:49 PM »
This topic has opended my eyes  :o. Today I made my first silver pruchase; a few tubes of Silver Eagles. I have a fire safe in the house but was thinking of getting a safe deposit box at the credit union. I had heard some stories about auctions of "unclaimed" valuables but never hear of the Feds checking the contents.

For now my silver stays in the house safe and maybe out to a paving stone later. Thanks...

Offline Mr. Bill

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Re: Is your bank or insurerer on these lists?
« Reply #10 on: October 29, 2009, 06:27:48 PM »
FYI, my wife just got a scam e-mail claiming to be from the FDIC, warning that our bank had failed.  There was a link that appeared to go to an official FDIC website but actually pointed to a scam site.

Pretty flimsy attempt at a scam, and I'm sure none of us here would fall for it.  ;)  But it's worth remembering that scammers will take advantage of popular fears like this.

Offline SurvivalKing

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Re: Is your bank or insurerer on these lists?
« Reply #11 on: November 06, 2009, 02:04:55 AM »
Hmm E*Trade and Bank of America, NA (my two primary banks) are both on the list luckily I have most of my money in tangibles like Cash, Silver, and Food.

Offline mountain.sarge

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Re: Is your bank or insurerer on these lists?
« Reply #12 on: November 14, 2009, 04:42:41 PM »
OK, this might be a stupid question. But, I am going to ask anyway. What does it mean if your bank is on this list???

Offline Truik

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Re: Is your bank or insurerer on these lists?
« Reply #13 on: December 16, 2009, 04:08:16 AM »
My banks aren't on this list so I feel a bit safer.

Of course, one of them is now under a new name because it DID fail a couple months ago and got bought up by a larger, more "stable" bank, but...the name it is called NOW is not on the list.

 ::) :P


Offline Spirit Wolf

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Re: Is your bank or insurerer on these lists?
« Reply #14 on: February 21, 2010, 01:32:30 AM »
Well this makes me feel better. My credit union is 4 stars on the first link and 5 stars on the second. :)

Offline surfivor

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Re: Is your bank or insurerer on these lists?
« Reply #15 on: February 23, 2010, 09:20:35 PM »

 I have money in Bank of America, should I consider moving the account some place else ? I also have some money in a credit union that is not on the list, but I'm not sure how I tell what is really a good place ..


Offline JerseyVince

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Re: Is your bank or insurerer on these lists?
« Reply #16 on: February 25, 2010, 02:01:27 PM »
Wachovia Bank's nickname after all the cash they lost their customers and insanely low interest rates Walkalloverya

Offline CyborgX

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Re: Is your bank or insurerer on these lists?
« Reply #17 on: February 25, 2010, 02:16:22 PM »
Nope, sure ain't!

Offline TNVolunteer

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Re: Is your bank or insurerer on these lists?
« Reply #18 on: March 21, 2010, 06:14:52 PM »
Well, looks like I have some work to do on this front.  Thanks for posting.


Offline Fyrekat

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Re: Is your bank or insurerer on these lists?
« Reply #19 on: April 08, 2010, 08:39:30 PM »
You can see the Texas Ratio for a large number of banks here:

http://www.lewrockwell.com/chris/banks/banks.html

"The Texas ratio is a measure of a bank's credit troubles. Developed by Gerard Cassidy and others at RBC Capital Markets, it is calculated by dividing the value of the lender's non-performing assets (Non performing loans + Real Estate Owned) by the sum of its tangible common equity capital and loan loss reserves.

In analyzing Texas banks during the early 1980s recession, Cassidy noted that banks tended to fail when this ratio reached 1:1, or 100%. He noted a similar pattern among New England banks during the recession of the early 1990s."

(Yes I pulled from the web)

Offline Emily

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Re: Is your bank or insurerer on these lists?
« Reply #20 on: November 08, 2010, 11:33:06 AM »
To the OP:  what is your opinion of the reliability of bankrate.com?

Offline viking

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Re: Is your bank or insurerer on these lists?
« Reply #21 on: January 04, 2012, 07:32:07 PM »
If so you may need to better protect your financial life. I know we have a financial section but for me my financial health is a critical aspect of my Emergency Preparations. Mods.. if you want to move this post that's fine by me. May we also consider making it an easy to find sticky somewhere and I'll try to update the list or links every 3-4 months...

Banks & Thrifts Graded D+ or worse (does not include Credit Unions):

http://www.moneyandmarkets.com/files/documents/X-List.htm#Toc211675100


Insurers Rated D+ or lower:

http://www.moneyandmarkets.com/files/documents/X-List.htm#Toc211675104

I'll endevor to keep these links updated once a quarter.

If this topic's been covered. My apologies. Last week I changed banks because of these ratings. I used to check on my bank's rating every year or so but let it slip.. Guess i need to be a little more on the ball about those check-ups. Most banks and insurers that fail were known to be in poor shape (D or worse) long before there failure. I am not predicting any given failure, just advising that these institutions are showing the preliminary signs of failure. Are you one of their customers?

Regards,
Shadowalker


Thanks for the Post, COOL AVITAR!

Offline preparenow

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Re: Is your bank or insurerer on these lists?
« Reply #22 on: June 29, 2012, 02:22:55 AM »
Thanks for the info guys. I checked my bank, and they're rated really low! They'll be losing my funds tomorrow!!

Offline daveinmichigan

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Re: Is your bank or insurerer on these lists?
« Reply #23 on: June 29, 2012, 11:36:01 AM »
I keep getting the Weiss login screen.

Offline AL13NS

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Re: Is your bank or insurerer on these lists?
« Reply #24 on: September 29, 2013, 12:29:32 AM »
So this will be my first post...

Lets start with how these on line websites determine their ratings for financial institutions.

Banks are required to submit a Consolidated Reports of Condition and Income (Call Report) on a quarterly basis to the Federal Financial Institutions Examination Council (FFIEC), and this report is aggregated to the Uniform Bank Performance Report (UBPR).  These reports are publically available, but can be difficult to make an assessment of the overall health of the institutions by themselves.  However, there is some validity to their ratings. 

Now lets mention the two ways banks will be put into receivership; lack of capital and liquidity.  As mentioned by Fyrekat, the Texas Ratio measures nonperforming assets to equity capital.  With out going into to much accounting terminology, when nonperforming assets are "written off" the balance sheet it goes through an allowance.  If it exceeds that allowance it is a direct hit to capital.  Banks are required to maintain a minimum level of capital in order to be considered "well-capitalized", and if banks drop below there can be devastating repercussions. Lending banks will no longer lend the institution money, and this is were you get a liquidity crisis because they cannot meet their daily cash needs. Liquidity crisis is rare, and is usually the result of deteriorating capital levels. Depending on the state or regulatory body, there is an established level of capital that if a bank falls below their is a legal obligation for them to be put into receivership.

The thing that these rating systems do not take into account, is the ability of management to effectively manage their problem assets and the ability that the bank has to raise capital.  Capital is raised to grow assets and, or recently, to cover losses.  Their are a variety of ways a bank can raise capital, and most banks failed because they lacked the capacity to raise capital in a timely manner.

Now you may have noticed that I have emphasised banks being placed into receivership rather then using the term failed.  They mean the same thing, but your individual bank account is insured by the FDIC for up to $250,000. Depending on the types of accounts you possess can even be insured for more. If you are considered a "sophisticated depositor" you should not place your wealth above your applicable insurance limit.  Currently, the FDIC has never failed to pay a depositor at a failed institution their fully insured deposits.  A bank will typically close on a Friday with a purchasing bank ready to reopen their branches on Monday.

Being a long time listener, over three years, I agree it is crucial to keep your wealth "well diversified." You should not put yourself in a situation that if you lost availability to your funds in any particular bank, or all banks for that matter, that you would not be able to provide for yourself and your family.  However, I would not concern myself with the small chance that the institution that I bank with may fail.

Your choice is to bank with a national or a community bank. My perspective is that community banks are intirely that; community banks.  They loan your funds locally and help support your community. They often have better customer service and are willing to work with you if you run into hard times financially.  They are not able to compete with the most compete rates for deposits and loans, and your should not expect them too. 

Given my limited experience with Credit Unions I will not talk on them, but they are also insured by the NCUA. 

Each state has their own local laws for how banks and credit unions operate.  They can be regulated by multiple bodies; state regulators, FDIC, FRB, NCUA, and OCC to name a few.  If you want more information regarding insurance or choosing a bank you can visit their websites or look at the CFPB.

Hope this was helpful..