Bank Risk

Blog

  • Unveiling of Bank Fraud Failures (dirty little secrets)

    🎧 Listen to the Article After about 6 months of compiling data and analyzing what variables to utilize, I made a very concerning observation.  I had nailed down 12 very strong variables which I felt would properly identify those banks with the highest possibility to fail.  While 96 percent of all failures come from C…


  • FDIC Insurance is the holy grail (Right?)

    Play audio In my last article, I discussed the difference between a bank’s performance and probability of failure.  Most bank rating agencies look at performance not potential for failure.  As a consumer or business person, your main goal should be preservation of capital.  With almost 4,000 traditional institutions in the US, you’d be surprised how…


  • Bank Performance or Peril (what goes up may come down)

    In 2007, I decided to take a bold step and sell my first business, returning to the banking world in Chattanooga. With my background as a banker and examiner, it felt like the natural move. I joined a community bank that boasted the highest Return on Equity in the country the previous year—a metric often…


  • My Confession (a lifelong obsession with bank safety)

    When I was a young man, I had heard that how you spend you spare time determines where you will be in ten, twenty, even thirty years.  This might be an indictment on my younger years, but I spent a lot of time in the library.  When I think of the public library, I consider…