Big Al45

10 Financial Entities On the Brink

Cesar, I agree in principal with your comments, but why would anyone want to short VNBC or DSL?

The potential reward from shorting stocks that are trading under $3 a share is much less than the potential risk. Some idiot (like Ken Thompson or Ken Lewis) could decide to acquire them to expand their "footprint in the rich California market.?"

10 Financial Entities On the Brink

For an independent opinion on the viability of a particular bank, check out the bank ratings at bankrate.com/brm/safes... Any bank that receives one star (including WM, BKUNA, DSL) from bankrate is probably going to fail. Any bank that receives two stars (Corus, Wachovia) is at risk of failure. Any bank that receives three or more stars (Regions) does not have an immediate risk of failure.

One word of caution. To use this site you have to know the banks legal structure. Most publically traded banks are bank (or thrift) holding companies that own multiple subsidiary banks. Bankrate evaluates each subsidiary bank separately. A holding company can transfer all of its garbage assets to the holding company level and make the subsidiary banks' financial statements look clean.

Why Downey Financial is Not IndyMac

Vineyard National will be the next California bank to fail, followed in short order by DSL. Will be real surprised if DSL lasts to Halloween.