alexb

Spotting Banks In Danger

From my reading of the latest Corus Bank 10Q, the percentage of non-performing loans over total loans is approximately 9.3%, not 13.2% - it's clearly stated on page 29 of the 10Q. Furthermore, half their assets are tied up in very safe short-term securities - they hold alot of Freddie & Fannie debt, which is now explicitly guaranteed by the federal government (as of this weekend!). Technically these are loans - but they're loans guaranteed to be repaid. So their real number comes out to be below 5% by my calculations.

Disclosure: I have a long position in CORS stock.