Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : The Ego Forum -- Ignore unavailable to you. Want to Upgrade?

To: hubris33 who wrote (6971)	4/3/2010 12:02:36 AM
From: Amark$p	Read Replies (1) \| Respond to of 12175

Some interesting comments you make. I like the bank I have and posted previously, Community National Bank & Trust. It has regular real estate and consumer loans, but being in rural Texas, real estate values never skyrocketed like elsewhere in US. Texas also has lower unemployment rate than rest of US. Thus, CNB&T has fewer problem loans where loan value exceeds FMV of real estate and in an area where more people are employed and thus able to pay their loans. It's common sense, IMO. banktracker.investigativereportingworkshop.org Factors you should look at from above link: 1) Loans over 90 days past due 2) Other real estate owned (REO properties) Look at the troubled asset ratio, which includes these 2 factors and others as % of bank Tier 1 capital. You want your bank to be well below the average of about 14. You really want it to be below 5, IMO. FWIW, I have never had a problem with ACH transfer between my Schwab account and CNB&T bank account. Transfers always take place within 24 hours. Always. I make over 30 transfers each year or about 3 per month, all posted within 24 hours. FWIW, my "primary bank", within walking distance from where I work and live is rated C-, not very good. But while I make deposits and pay checks with this C- bank, most of my cash balance is in CNB&T via ACH transfers via Schwab (both banks linked to Schwab ACH). FWIW, I prefer the Investigative Reporting Workshop website to the Street.com, but I review both these websites. Do not put your faith in FDIC insurance. FDIC may not be there when you really need it or, more likely, it will take months to get the FDIC to reimburse your prior bank account balance if or when we have massive bank failures. The US could have a financial meltdown and CNB&T may still be a viable bank. First, loan repayments to CNB&T will likely be enough to pay any depositors wanting to withdraw and Second and more important, more investor money will flock to the safest banks, of which CNB&T is clearly one of the safest. Also ponder this: Too Big To Fail banks may likely go under in a real financial meltdown. FDIC may not be able to bail them out timely if at all... Just look at the derivative positions of most major banks, and most especially JPM Chase. A C rating which you cite may be overly generous... In any event, it is not rocket science, choose a bank with a low troubled asset ratio, with few loans over 90 days past due and in an area with low unemployment.