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$XLF $GS $JPM $C Texas Ratio: From Wikipedia - Measure of a bank's credit troubles. Developed by Gerard Cassidy and others at RBC Capital Markets, it is calculated by dividing the value of the lender's non-performing assets (Non performing loans + Real Estate Owned) by the sum of its tangible common equity capital and loan loss reserves. In analyzing Texas banks during the early 1980s recession, Cassidy noted that banks tended to fail when this ratio reached 1:1, or 100%. He noted a similar pattern among New England banks during the recession of the early 1990s. There are nearly 380 banks with a Texas Ratio greater than 100%, 190 banks with a Texas Ratio above 150%, and 122 banks with a Texas Ratio above 200%. <a href="http://modj97-predictwallstreet.blogspot.com/2010/03/buy-and-sell-points-banks-interactive.html">http://modj97-predictwallstreet.blogspot.com/2010/03/buy-and-sell-points-banks-interactive.html</a> |
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