Bank Ratings- Veribanc vs theStreet.com

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yagasjai's picture
yagasjai
Status: Martenson Brigade Member (Offline)
Joined: Apr 18 2009
Posts: 68
Bank Ratings- Veribanc vs theStreet.com

 CM wrote a report a long time ago about FDIC and how evaluate the security of banks, in which he suggested using either theStreet.com  or Veribanc Blue Ribbon reports to determine which banks to choose. He said to only use blue ribbon banks or banks rated B+ or better on theStreet. Now that #Occupy has drawn attention to Wall Street and our banking system, friends and relatives are beginning to pay attention to this, and are asking for info about which banks to use. I have been passing along the two sites mentioned above. I had been relying on theStreet to make my selections, but wanted to see how Veribanc compared, in case any friends or family had questions.

I ran the report for the 13 banks closest to my zip code, and was surprised to find that they were all at the highest rating, GREEN*** and wondered if that was unusual. I expected more variation. Four of them were listed BB- which means they've had blue ribbon ratings for 8 consecutive quarters or more- and two of those were my two banks, which pleased me. However, on theStreet, one of those banks rates a B- (the highest rating I was able to find in my area) and one rates a C. This also surprises me. Somehow I would think a C rating on the one would not translate to a blue ribbon on the other. I understand that they probably use different criteria for their ratings, but now am wondering which one to trust more.

For me, the Veribanc report was rather useless, because it confirmed what I already knew, I had picked two of the best banks in my area. But wonder if it might be useful to others who live elsewhere in the country. I hate recommending people spend money on a report if they can get as reliable info for free on the other site. One possible benefit I see for the Veribanc reports is that it includes institutions not covered by theStreet. But other than that, I'm wondering which reports others are relying on? 

Travlin's picture
Travlin
Status: Diamond Member (Offline)
Joined: Apr 15 2010
Posts: 1322
Another source

I like Bankrate.com.  They are free and very good.  http://www.bankrate.com/rates/safe-sound/bank-ratings-search.aspx

After you get the screen for your bank then click on "Memo" or "Statement" for detailed information.  Example -- http://www.bankrate.com/rates/safe-sound/bank-ratings.aspx?t=cb&i=Banker...

Travlin 

yagasjai's picture
yagasjai
Status: Martenson Brigade Member (Offline)
Joined: Apr 18 2009
Posts: 68
 Travlin, Thanks for this,

 Travlin,

Thanks for this, I will check it out.

Betsy

I also answered one of my own questions about the report from Veribanc, when I went to run one for my mom's banks- there is a section where one is allowed to choose the minimum rating one would like to see, I had mine set on green***, which is why my report only came back with banks meeting that criteria. I assume those missing from the list, and I did notice a few, do not have the highest rating and were therefore not included in the report. 

logician2000's picture
logician2000
Status: Member (Offline)
Joined: Oct 8 2013
Posts: 1
Bank Ratings

Be careful when using any "free" service as they are usually getting paid (advertising revenue) by the banks they rate.  This is an inherent conflict of interest.  Also, look for any firm's track record and see how it fits or doesn't fit with the actual performance of the industry that they are rating.  Not much value in a rating system that throws 40 percent or more of the industry into one of its lower rating categories yet no where near that percentage of the industry ends up in default..

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