NYU Stern has a tool it has developed that predicts the banks that you:
Should not own.
Should not keep your money in.
No surprises here:
It's no surprise that Bank of America (BAC), Citigroup (C), and JP Morgan (JPM) top the list. I've covered my thoughts on the banks before. They haven't changed much since then. This tool takes a shot at calculating the capital shortfall of various banks given a financial crisis. I figure that comes in pretty handy considering that I think we are on the path towards financial crisis 2.0. Meanwhile, Congress is trying to balance the budget and this is simply a pedal on the proverbial crisis accelerator.
The banks rated by risk:
Reference the systemic risk (SRISK%) on a bank by bank basis to see where your bank is on the list.
Click to enlarge:
Reference the Chart Below:
The risk of the entire financial system is lower than it was a year ago, but this also illustrates that we are still at relatively elevated risk levels compared to the long run averages of 2001-2006. My gut tells me that this trend will reverse higher as the perpetual Greece bailout turns sour.
Click to enlarge:
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
