My New Blog

Hey guys,

I have gathered a list of "Banks In Trouble."  Keep an eye on this list. 

 Stephen L. Smith, President of A.C.L. Mortgage Services, L.L.C.

Email address:  steve@acl-mortgage.com

"'Banks In Trouble' List - A list of banks in trouble by Richard X. Bove of Ladenburg Thalman includes some surprisingly big names like Bank of America and JP Morgan.

The 'banks in trouble' list defines 'at risk' institutions like the recently failed IndyMac as those having more than 5.0% of their reserves plus common equity outweighed by non-performing assets plus 90-day in arrears loans.

The formula is non-performing assets + 90-days late loans divided by bank reserves + common equity. Any financial institution with a ratio over 5% is at risk.

Banks In Trouble List:

1. IBERIABANK Corporation - IBKC - 8.7%
2. Webster Financial Corporation - WBS - 8.6%
3. Fulton Financial Corporation - FULT - 8.4%
4. Bank of America Corporation - BAC - 8.0%
5. Provident Bankshares Corporation - PBKS - 7.9%
6. Regions Financial Corporation - RF - 7.8%
7. Cathay General Bancorp - CATY - 7.7%
8. Sovereign Bancorp, Inc. - SOV - 7.6%
9. First Midwest Bancorp, Inc. - FMBI - 7.4%
10. Wilmington Trust Corporation - WL - 7.4%
11. M&T Bank Corporation - MTB - 7.3%
12. TFS Financial Corporation (MHC) - TFSL - 7.2%
13. WesBanco, Inc. - WSBC - 7.0%
14. U.S. Bancorp - USB - 6.8%
15. NBT Bancorp Inc. - NBTB - 6.7%
16. Umpqua Holdings Corporation - UMPQ - 6.6%
17. City National Corporation - CYN - 6.3%
18. East West Bancorp, Inc. - EWBC - 6.1%
19. BOK Financial Corporation - BOKF - 6.1%
20. Capital One Financial Corporation - COF - 5.8%
21. Susquehanna Bancshares, Inc. - SUSQ - 5.6%
22. MB Financial, Inc. - MBFI - 5.6%
23. United Bankshares, Inc. - UBSI - 5.4%
24. JPMorgan Chase & Co. - JPM - 5.2%

A good stock play on the banks in trouble list prepared by financial analyst Richard X. Bove of Ladenburg Thalman would be to buy put options because the stocks are headed down."