IMF warns: U.S. banks fragile! Need $76 billion in capital!
The IMF warned that the U.S. banking system remains fragile, needing as much as $76 billion in capital.
Their reasons: Precisely the same ones we’ve been citing all along: Falling home prices, souring commercial real estate, and overall economic weakness have the potential to cause major shocks that could expose U.S. banks to bigger losses.
Which big banks are among the most vulnerable? The IMF isn’t very specific. But Weiss Ratings is: They are ...
Bank of America
Capitol One
Citibank
HSBC Bank USA
KeyBank
PNC Bank
RBS Citizens
Regions Bank
SunTrust Bank
US Bank
Wells Fargo
... just to name the largest.
They all get ratings of D+ (weak) or lower, and that means they all are vulnerable.
Further, among 7,851 institutions we reviewed, only 911 merited a rating of B+ (good) or better, qualifying them for our strongest list; while 2,331 received a rating of D+ (weak) or lower, the criteria for inclusion in our “weakest” list.
Worse, the weakest banks and thrifts now hold the lion’s share of the industry’s assets — $7 trillion, or 52.9 percent. In contrast, the strongest institutions hold assets of only $491.7 billion, or 3.7 percent of the total.
So now do you see why I’m so concerned and why I’ve been emailing you almost daily with my warnings?
This is also why this COMING THURSDAY, Mike Larson is issuing a gala edition of our Safe Money Report, including a complete set of new recommendations to help protect you from this unfolding crisis and PROFIT from its consequences!
Warning: To get it, you must be on board by this Wednesday. Click here for the details.
Good luck and God bless!
Martin
www.trade4all.com/view_newsletters.php
July 30, 2010