List of Troubled Banks

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UPDATE: Click here for the latest version of this list.

Ready to see where your bank stands?

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)

All of this information is available on the FDIC website, but it’s extremely difficult to gather in a meaningful way. In fact, I don’t think you’ll find a list like this anywhere else on the internet.

If you found this list useful, please Digg it up.

2:04 pm on December 29, 2008
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