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The First National Bank of Arizona, along with 1st National Bank of Nevada and First Heritage Bank N.A.), have joined IndyMac in the recent string of failed banking institutions.
Thanks to the Glass-Steagall Act of 1933, savers in American banks today believe that their accounts were insured by the FDIC up to $100,000. While this is true, the FDIC has only a limited capacity to make depositors' losses good. With only a 1.2% ratio of insurance reserves to deposits, clearly a single large bank or further small bank failures will wipe out the FDIC's reserves.
On a recent iTulip thread, some recently advocated the Under-the-Sealy or the First-Rose-Garden banks. If you're not ready to find a hiding place in your home for your cash, you will want to find a safe bank. You could, if you had the time and expertise, visit banks in your neighborhood and examine their books until you found one with an acceptable loan to deposits ratio. Most of us need an easier way to identify a good bank.
Here's how.
Thanks to the Glass-Steagall Act of 1933, savers in American banks today believe that their accounts were insured by the FDIC up to $100,000. While this is true, the FDIC has only a limited capacity to make depositors' losses good. With only a 1.2% ratio of insurance reserves to deposits, clearly a single large bank or further small bank failures will wipe out the FDIC's reserves.
On a recent iTulip thread, some recently advocated the Under-the-Sealy or the First-Rose-Garden banks. If you're not ready to find a hiding place in your home for your cash, you will want to find a safe bank. You could, if you had the time and expertise, visit banks in your neighborhood and examine their books until you found one with an acceptable loan to deposits ratio. Most of us need an easier way to identify a good bank.
Here's how.
1. Follow this link: http://www.thestreet.com
2. Select: Portfoliio and Tools," then select "Banks and Thrifts Screener."
3. Select your state and "A" ratings and look for banks with this rating that are not in an inconvenient location (from where you live).
4. Withdraw your money from the lower-rated bank and deposit in a new account with the top-rated bank (hopefully, A or A-, but obviously you'll be better off in a "B" range bank than a C, D, or F bank).
2. Select: Portfoliio and Tools," then select "Banks and Thrifts Screener."
3. Select your state and "A" ratings and look for banks with this rating that are not in an inconvenient location (from where you live).
4. Withdraw your money from the lower-rated bank and deposit in a new account with the top-rated bank (hopefully, A or A-, but obviously you'll be better off in a "B" range bank than a C, D, or F bank).
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