Saturday, November 15, 2008

Bad Bank Alert

I scanned the FDIC data for the banks that had the smallest cushion against defaulting loans. The latest data available is from 6/30/08, so there might be some additions when the 9/30/08 data becomes available. In short, the ratios measure the amount of loans past due and in non accrual (bad loans) and non-accrual loans (separately) relative to the total of Tier 1 Capital and Loan Loss Allowance. It would be prudent to review your accounts with these banks to make sure that your funds are fully insured. The FDIC website is quite helpful in evaluating account limits.

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