Marc - If you're referring to chargeoffs when you discuss loan loss criteria, I agree with your logic completely. I pay much more attention to the level of non-performing assets than to chargeoffs, because I believe banks have less discretion in defining NPAs.
The list of criteria looks good, but I believe it needs an addition that reflects the level of non-performing assets and the adequacy of the loan loss reserve.
Are Bank Stocks Buyable? [View article]
Are Bank Stocks Buyable? [View article]