Why are we trusting an MSN list of safe banks?
Was this list made up by libs for their lib friends who are milking these banks?
In the article, they link to
http://www.investinganswers.com/financial-dictionary/ratio-analysis/texas-ratio-2619
which explains the formula and notes this at the end of the piece:
Why It Matters:
The Texas ratio takes into account two important factors in a bank’s health: the number of bad loans it’s made and the cushion the bank’s owners have provided to cover those bad loans (i.e. common equity).
If too many of the bank’s loans are nonperforming (as described by the Texas ratio’s numerator), the bad loans will erode the bank’s equity cushion, which could cause the bank to fail.
Likewise, if there is not enough equity in a bank (as described by the Texas ratio’s denominator), the bank will not be able to absorb very many bad loans and the bank will fail.
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Judge for yourself.