17 Top Banks for Systemic Risk

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 |  Includes: AIG, BAC, BK, C, GNW, GS, HIG, IAT, IYF, JPM, LNC, MET, MS, PFG, PRU, RF, RKH, SLM, STI, WFC
by: Glen Bradford

NYU Stern has a tool it has developed that predicts the banks that you:

  1. Should not own.

  2. Should not keep your money in.

No surprises here:
It's no surprise that Bank of America (NYSE:BAC), Citigroup (NYSE:C), and JP Morgan (NYSE: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:

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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:
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Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.