Top 10 Global Financial Institutions Exposed To Systemic Risk

by: Glen Bradford

I'm proud to announce that NYU Stern School of Business has come up with a global ranking of financials instead of just a ranking for U.S. financials. I love the tool. Not surprisingly, Deutsche Bank (NYSE:DB) is No. 1 in this list. I guess Bank of America (NYSE:BAC) looks a little more attractive when compared to this tougher, global, more reckless crowd. To the leaderboard:

My advice

Stay clear of these banks. Common wisdom indicates that if you give your money to the banks, you are a good person. Uncommon wisdom tells me that the global real estate bonanza is finally overblown and we can finally start settling in to reality.


Overall, I'm a fan of the thesis that China is imploding, that the eurozone is structured poorly, that the U.S. will not run out of money (MMT), that the world is not going to end, etc. I'm an optimist at heart. That said, the way to make a heck of a lot of money investing is to identify the landmines and to not ever be willing to pay something for nothing ... which is arguably what you might be doing if you pick up any of the above mentioned companies unless you know exactly what you are doing. When you are looking for undervalued companies, pick out ones that don't carry systemic risk (especially country specific counter-party risk that can be identified in a Google search).

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