Bank Stocks That Are Toast

Description:

In step with the Snapback-Bank-Stocks Banks That Can Snap Back Hard, article, here at Stockpickr.com, we set up a portfolio called Bank-Stocks-That-Are-Toast Bank Stocks That Are Toast. The FDIC has publicly stated that there are 90 or so banks on their “watch-list” for possible defaults
Here are the requirements I used for the portfolio
1) Increasing non-performing loans (NPL’s). We want companies who are actually experiencing an increase in their defaults. And that are loaded with toxic subprime, prime and alt-a paper.
2) Increased capital reserves requirements into the company’s loan loss provisions portfolio. These companies will need to raise more capital, at extremely dilutive spreads to continue their current business
3) Widening credit default swap spreads (CDS).
The Toast Bank stocks portfolio, includes names like Corus Bankshares (CORS), Downey Financial (DSL), and Vineyard National Bancorp (VNBC)

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