All US Banks and their Texas Ratio
Chris Brunner at the Lew Rockwell Blog posted this interesting article about how to get a clue as to what banks might be the shakiest at the moment, and more likely to fail.
A few days ago, a friend of mine called me to ask if I had any idea how to figure out which banks would be the next to fail. Some extensive googling revealed that while lists of troubled banks obviously exist, none of them seem to be readily available to the public. Why? Because the bankers do not want you to have this. Just watch the president of the American Bankers Association in this interview talk about how important it is to keep this private.
This is a list of all of the banks in the United States and the corresponding Texas Ratio for each one. Developed by Gerard Cassidy, the Texas ratio is a measure of a bank’s credit troubles. Basically, the higher the ratio, the worse the situation is for that particular bank. Banks with a ratio of 100 and higher are in very serious danger of collapse, and banks with a ratio of 50 or higher are vulnerable.
This is the formula I used:
100 * ((Non-performing Assets – U.S guaranteed loans) + Other REO) / (Equity + Loss Reserves)
… I recommend Chris’s post – read it!
I have put the list together as a word .doc file and as an excel spreadsheet sorted (ascending) by state and city and then (descending – worst to best) by Texas Ratio.