Is Your Bank on the Mend? How to Tell

Smart Money ^ | 3/10/2009 | Aleksandra Todorova

[shove_it]

The Federal Deposit Insurance Corporation, or FDIC, has been guaranteeing deposits since 1933 -- and since then, consumers have not lost a single penny.

But now the banking system is so stressed that the FDIC itself is running out of money. Currently, the government agency covers up to $250,000 per account (that amount is good through Dec. 31 when it may drop back down to $100,000).

The organization, which is funded by insurance premiums paid by banking institutions, recently doubled those premiums to raise extra cash. Now it's turning to Uncle Sam for more help. Last week, FDIC Chairwoman Sheila Bair requested that the government more than triple the organization's borrowing authority from $30 billion to $100 billion.

We're not telling you to take your money out of the bank. Indeed, almost everyone expects the government to find a way to keep deposits insured should more banks fail.

But just how likely is it that you'll wind up relying on the FDIC's insurance anyway? If you're curious about the health of your bank, you can get a pretty solid picture by looking at some basic numbers that publicly-held banks must disclose in their annual financial reports filed with the Securities and Exchange Commission. (Privately-held banks, meanwhile, have to file what are known as “call reports” with the FDIC, which contain this information as well.)

Here are four key numbers that will tell you whether your bank is the epitome of health or gasping its final breath...

[mylife]

I should have known BOFA would be at the top of the ****list

[Jordo]

What do you mean?

I didn’t see anything in the article indicating B of A is at the top of a list.

[mylife]

They are the only ones spotlighted for a “negative”

[Jordo]

The B of A “spotlight” says its NPA ratio is 1.77%, which is in the “ok” range.

“Today, anything below 1% is really good,” says Fortune. “Below 2% is OK. And, as you start to get above 4%, you start to worry.”

[OB1kNOb]

almost everyone expects the government to find a way to keep deposits insured should more banks fail.

...and almost everyone might wake up one morning and find themselves very shocked to learn otherwise.....

[Larry381]

I have 3 credit cards with Chase and have an excellent credit history with them. Yesterday I received 3 separate letters from them raising the interest rate on all 3-by a lot.
You can of course refuse to pay the higher interest but if you do you can no longer use the card.
I received the same from Capitol One last week also raising my rates. If this is how they treat customers who never miss a payment, pay 3x the minimum payment every month and have never had a late fee I wonder how people with lousy credit are doing.

[TurtleUp]

Actually, my bank is excellent. I dumped my TARP banks and shifted to local banks with excellent ratings and financial standing. I’m hoping more Americans will do the same and kill the TARP banks.