HI All Whats the best way to determine the safety of a bank? Today I withdrew all my funds from National City bank. Their stock price has plunged to less than 2 bucks a share and their earning per share shows a loss of 4 bucks. Can a person determine bank safety by the companies P/E ratio and earnings per share? thanks sterling
You did not have to worry if it was 100k, or less, if your bank is FDIC insured. Do now have the cash under your mattress until you find a bank ? My bank is small and FDIC insured. I am actually not worried about my cash there. The worst that can happen is that my cash will not be available for a couple of days until FDIC takes it over.
1. Look for banks who's stock price has declines less then others in percentage terms. 2. Make sure they are big and most likely too big to fail. 3. Avoid banks that have high yield CDs, high CDs = desperate need for cash. 4. Make sure the account is FDIC insured and dont put in more then $100k. Regards, -Neo
agree. they can print as much as needed. no need to worry <=100K if this is not enough-google still works, you know.. just type bank rating and first three links should be more than enough. first- http://www.fdic.gov/bank/individual/bank/index.html second- http://www.bankrate.com/brm/safesound/ss_home.asp
You might check out this website. http://bankimplode.com/ They are basically pulling together a lot of information from public sources to draw conclusions about which banks are the next most likely to implode. (I too have funds at National City)
Seems they dont think too highly of National City http://bankimplode.com/blog/2008/09/29/national-city-is-crashing/
*************************** No, they don't. Maybe it's a good thing for us National City customers. If National City fails right away, we'll get our funds back while the FDIC still has some money left.