Safest US Banks?

Maybe I'm paranoid but to me it seems like deja vu all over again. Credit and derivatives almost brought down the system in 2007-08. I don't know what the numbers were then but I understand Goldman-Sachs has 70 times the derivative exposure that brought down Leahman Bros.

The top three banks; Chase, Citigroup, and Goldman-Sachs have assets of 3.5 trillion and exposure to 144 trillion in derivatives.

Fourth on that list BAC (my bank) at 27 trillion but I seem to recall that they did have over 40 trillion. If so they have reduced their exposure.

Fifth on the list is Wells Fargo at 7 trillion and of the big banks seems in the best shape to survive.

It seems that many of these derivatives are interest sensitive and probably one reason the FED hasn't raised interest rates fearing they might bring it all crashing down. And that might be a reason for EU negative interest rates.

I can't see how the top three have any hope of survival in a severe downturn. BAC doesn't look much better but they seem to be trending in the right direction. Wells Fargo seems best positioned to survive but is that relatively speaking?

I have direct deposits and pay bills through online banking at BAC so changing will be a PITA but worth it if Wells Fargo survives and BAC doesn't. But maybe not if Wells Fargo is the last to fall.

Here is the link to the office of the comptroller of the currency and the banks are listed at the very bottom:

http://ift.tt/25yXuT1

So I am just wondering do I stay with BAC, switch to WF or a regional bank? I am not in a position to make any statement just looking for the safest bank to do business with.

Let's block ads! (Why?)

Safest US Banks?