Bank Safety Now More Important Than Yield or Convenience

[Verrocchio]

Re: Bank Safety Now More Important Than Yield or Convenience

Thanks for doing the lookup, but Temecula is an hour drive inland from me. I am actually on the border of Encinitas, literally.

I do take heed of Mish's warning. I know BankRate is not perfect.

Since I can't see TheStreet's research tool, if it's convenient for you, could you look up what it says about San Diego Trust Bank?

Thanks

You'll like this if that's where you have your money, PD. TheStreet awards San Diego Trust Bank, San Diego, a "B+," Good. This is second only to the A and A- ratings of Excellent.

The B+ rating means that, in our opinion, this institution offers good financial security and has the resources to deal with a variety of adverse economic conditions. It comfortably exceeds the minimum levels for all of
our rating criteria and is likely to remain healthy for the near future. Nevertheless, in the event of a severe recession or major financial crisis, we feel this assessment should be reviewed to make sure the institution is
still maintaining adequate financial strength.

How does this rating compare with what you learned from other sources?

[pianodoctor]

Re: Bank Safety Now More Important Than Yield or Convenience

You'll like this if that's where you have your money, PD. TheStreet awards San Diego Trust Bank, San Diego, a "B+," Good. This is second only to the A and A- ratings of Excellent.

The B+ rating means that, in our opinion, this institution offers good financial security and has the resources to deal with a variety of adverse economic conditions. It comfortably exceeds the minimum levels for all of
our rating criteria and is likely to remain healthy for the near future. Nevertheless, in the event of a severe recession or major financial crisis, we feel this assessment should be reviewed to make sure the institution is
still maintaining adequate financial strength.

How does this rating compare with what you learned from other sources?

Thanks Verrocchio.

It's the same conclusion I reached. BankRate rates it "4 out of 5", but only Citibank was a 5 in my neighborhood. What I have not been able to figure out is what, if any meaningful difference there is between a 4 and a 5 , or a B+ and an A or whatever. Perhaps the fine distinctions are just 'touchy-feely' on the part of the reviewer.

But maybe that's not really important. The important thing is to stay informed on what's going on with one's particular bank. More than a quick overall rating, I was actually more interested in the details of what risks they are or are not exposed to, what their business/management record is, etc. I looked at their SEC filings. To me, they're an "A+", subject to revision as time passes. I'll keep checking on them.

[Verrocchio]

Re: Bank Safety Now More Important Than Yield or Convenience

The important thing is to stay informed on what's going on with one's particular bank. More than a quick overall rating, I was actually more interested in the details of what risks they are or are not exposed to, what their business/management record is, etc. I looked at their SEC filings. To me, they're an "A+", subject to revision as time passes. I'll keep checking on them.

Good thinking, PD. These days you got to keep your eyes wide open all the time (J. Cash).

[metalman]

Re: Bank Safety Now More Important Than Yield or Convenience

Good thinking, PD. These days you got to keep your eyes wide open all the time (J. Cash).

been here for years, as all here know. point... does anyone here really think someone is going to give any of us 'points' for knowing what was coming down?

everyone will hate us for it!!! use the info to your advantage and stfu.

[Verrocchio]

Re: Bank Safety Now More Important Than Yield or Convenience

been here for years, as all here know. point... does anyone here really think someone is going to give any of us 'points' for knowing what was coming down?

everyone will hate us for it!!! use the info to your advantage and stfu.

I really don't get your point, metalman. Who do you think it is that wants points? And what's the point of stfu?

[Verrocchio]

Re: Bank Safety Now More Important Than Yield or Convenience

zmas and nitro, the Canadians have the CUDIC, Credit Union Deposit Insurance Corporation, and the Americans have the National Credit Union Share Insurance Fund. If you have your money in a CU, it may important to estimate the solvency of your CU and to also determine the extent of the insuring agency's reserves.

[Verrocchio]

Re: Bank Safety Now More Important Than Yield or Convenience

Catherine Austin Fitts has posted a thorough, step-by-step process for evaluating local banking institutions on her Solari Web site, Going Local: How to Find and Evaluate a Local Bank. It's a very detailed, due diligence approach.

[ax]

Re: Bank Safety Now More Important Than Yield or Convenience

And another failure....

http://www.marketwatch.com/news/stor...7ABADF78968%7D

[Verrocchio]

Re: Bank Safety Now More Important Than Yield or Convenience

Good catch, ax. Friday afternoon/evening seems to be the time for announcements of bank failures.

[Verrocchio]

Re: Bank Safety Now More Important Than Yield or Convenience

Friday afternoon/evening seems to be the time for announcements of bank failures.

Silver State Bank In Nevada Fails


September 6, 2008 01:29 AM EST |

WASHINGTON — Regulators on Friday shut down Silver State Bank, saying the Nevada bank failed because of losses on soured loans, mainly in commercial real estate and land development.
It was the 11th failure this year of a federally insured bank.
Nevada regulators closed Silver State and the Federal Deposit Insurance Corp. was appointed receiver of the bank, based in Henderson, Nev. It had $2 billion in assets and $1.7 billion in deposits as of June 30.
Andrew K. McCain, a son of Republican presidential nominee John McCain, sat on the boards of Silver State Bank and of its parent, Silver State Bancorp, starting in February but resigned in July citing "personal reasons," corporate filings with the Securities and Exchange Commission show. Andrew McCain also was a member of the bank's audit committee, responsible for oversight of the company's accounting.
The younger McCain, who is the chief financial officer of Hensley & Co., the beer distributorship of which Cindy McCain is chairwoman, is the Arizona senator's adopted son from his first marriage.
Andrew McCain's position on the Silver State board and departure were first reported Friday by The Wall Street Journal online.
Silver State Bank ran into difficulty because of a substantial amount of "poor-quality loans primarily related to real estate development" in southern Nevada and other distressed markets, FDIC spokesman David Barr said.
"When the housing market slowed down, people who bought raw land to build new homes didn't need that land so they couldn't do anything with it and repay their loans. So those loans went bad," Barr said.
--------------------------------------------------------

Yet another bank has failed and was closed by the FDIC on a Friday. The Silver State Bank closing had the added fillip of Andrew McCain, son of United States Senator and Republican presidential nominee on the board, bringing to mind the senator's involvement in the Keating 5. No less than 747 savings and loans failed.

John Mauldin writes in the current issue of his Frontline Weekly Newsletter that Rich Lashley of PL Capital "guesses there are about 4-500 banks (5% of the total, with concentrations in states with bad housing markets) which are in some level of financial stress, meaning they need to raise capital or reduce lending. His guess is that we will see about 100-150 banks fail over this cycle. He would be surprised if we saw more than 3 top 50 banks fail." If Lashley is right, announcements of failed banks will be a regular feature on Friday afternoons for some time.

[touchring]

Re: Bank Safety Now More Important Than Yield or Convenience

I'm not putting any money in any american bank or financial institution, citibank, BoA, whatsoever.

i don't care what AAA rating they put - we all know rating agencies are a joke.

I am worried about my money too. I have a savings account that I recently moved to the Banque Postale in France based partially on this:

http://tropicalbear.over-blog.com/pa...s_-607349.html

For those that don’t read French it says, among other things, that the Banque Postale is the safest bank in the world. If we are living in an age when even Wall Street stalwarts such as Bear Stearns can be fed to the wolves what bank is safe? Winter recommends we watch the texas ratio:

http://wallstreetexaminer.com/blogs/winter/?p=1803

Maybe a bank is just not a safe place to be today. What about foreign government bonds? gold bars stuffed in the mattress?