All Financial Data Now as of December 31, 2009

Star-ratings for all U.S. banks and federally insured credit unions have just been updated and we are pleased to report that 33% of the nation’s banks and 38% of credit unions are strong enough to earn Bauer’s highest 5-Star rating. This actually marks a slight improvement in banks from year-end 2008 when only 31% qualified for this coveted status. The credit union number, however, is substantially lower than the 46% that earned 5-Stars a year ago.   

 At the other end of the spectrum, the number of banks on BauerFinancial’s Troubled and Problematic Report (i.e. rated 2-Stars or below) has now topped 1,000. At December 31, 2008, the number was 732. The number of credit unions rated 2-Stars or below increased from  227 at December 31, 2008 to 464 at year-end 2009.

For comparison, the FDIC’s “Problem List” is now at 702. At year-end 2008, it was just at 252. We understand why the FDIC doesn’t publish its “Problem List” or make its ratings public. It is afraid of causing a run. And rightfully so. Runs were to blame in the failures of at least two high profile failures in the past two years—Indymac and WaMu. Indymac already had one foot in the grave at the time, but WaMu was a victim of fear mongering.

That being said, of the 187 banks that have failed in the past 2 years (March 2008—February 2010) an overwhelming 97% first appeared on Bauer’s Troubled and Problematic Bank Report. With that kind of track record, there is absolutely no reason for anybody to be caught unaware, or worse yet, underinsured.

Help us to help others by spreading the word to your neighbors and friends. Tell them to check out their bank or credit union on our web site: www.bauerfinancial.com.

They’ll thank you for it.