What are the red flags that a bank is in trouble?

22 Mar What are the red flags that a bank is in trouble?

Paying interest rates that are abnormally high compared to everyone else’s could be a red flag that the bank is having liquidity issues.    Asset quality issues will appear if the bank’s past due loans and non-accruals are higher than the norm.  Some other red flags include: if a bank has a concentration in brokered deposits, if the bank is not profitable, or if the value of the bank’s stock is plunging. 

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Jay S. Fleischman is a bankruptcy lawyer with offices in Los Angeles and New York. He can often be found on Google+ and Twitter, where he shares information about consumer protection issues and personal finance.
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