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Issues

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Are You Doing Business with These Ticking Time Bombs?

Mike Larson | Friday, December 28, 2012 at 7:30 am

Mike Larson

If you listen to the politicians and central bankers here in the U.S. and overseas, you’ll hear a remarkably happy tale:

They’ll tell you the global financial crisis is over.

They’ll say the banking sector is healing.

They’ll claim that the sovereign debt debacle is behind us.

And while they may not go so far as to explicitly tell you to buy up all the bank stocks you can get your hands on, that’s pretty much the unspoken message they’re sending out.

Me?

I deal in facts. Numbers. Rock-solid research. And the work that I’ve done, in conjunction with my colleagues at Weiss Ratings, suggests the global banking system remains exposed to all kinds of shocks. So if you’re holding vulnerable bank stocks, depositing money at vulnerable institutions, or otherwise leaving yourself exposed to these ticking time bombs, I think you’re making a serious mistake!

Global Banking Firms That
Have Us Downright Worried!

Weiss Ratings has been a leader in independent bank ratings since 1987, and publishes analysis and letter grades on over 15,000 U.S. commercial banks, savings banks, savings and loans, and credit unions.

Unlike ratings agencies that are paid by the banks for the ratings, Weiss Ratings never has accepted — and never will accept — any compensation whatsoever from the companies it rates to issue the ratings!

And thanks to our strict no-conflict-of-interest policy, ours is one of the very few research organizations that has consistently warned consumers of future financial failures … while ALSO identifying the truly safest institutions.

That’s why I’m so excited about the release of our fresh, hot-off-the-presses report, Winners and Losers in the Great Global Banking Crisis of 2013-2014. While many “experts” on Wall Street, or in the financial markets overseas, are touting large bank stocks, we’ve identified several institutions that look vulnerable based on an objective analysis of their capital, asset quality, profitability, liquidity, and stability.

One leading German bank merits a Weiss Rating of “D,” or “weak,” due largely to its very weak capital and poor profitability. In particular, for every dollar of assets, the bank has only 1.9 cents in a measure of capital called “tangible common equity.” That ratio — 1.9 percent — is just one-fourth the industry average of 7.5 percent. Plus, its return on assets is just 0.1 percent, a fraction of the industry average of 0.9 percent.

Another, a French banking behemoth, was already faring poorly. Now, it has been downgraded to an even lower “E-” due to a wide range of issues. Just one example: The firm has one of the lowest net interest spreads in the industry at 0.7 percent, about one quarter of the average, which has led the bank to a negative return on assets of 0.3 percent.

At the same time, one bank that does a large chunk of its business right here in the U.S. earned a healthy rating of “A-.” It’s highly profitable and not weighed down by a host of lousy nonperforming loans. That’s exactly the kind of fundamental strength you want in a bank that holds your money!

Here’s How to Separate the Wheat from the
Chaff in the Global Banking Sector

This kind of information is simply invaluable in today’s challenging economic environment. And it’s precisely what you’ll find in our new report, Winners and Losers in the Great Global Banking Crisis of 2013-2014.

The best part is, you still have time to pick that report up at a special price — only $149. That’s HALF OFF the cover price of $299, which is what we’ll go back to charging once this introductory period comes to an end.

In addition to more information about the banks I discussed above, you’ll also get the scoop on the following …

* A complete explanation of our forecast on just how bad the coming global banking disaster is going to be (Hint: Far WORSE than anything we saw during the collapse of Lehman Brothers in 2008!) …

* Dirty secrets that Wall Street and the big three credit ratings agencies do NOT want you to know about — including countless examples of past incompetence … if not outright fraud …

* Which parts of the world look strongest based on our research — invaluable information that can help you decide what stock and bond markets have the best chances for growth in 2013 and beyond …

* Exclusive access to our complete list of global bank ratings on 498 global banks located in 64 countries around the world…

* Detailed analysis of the 11 strongest global banks and 12 weakest global banks …

* My specific instructions on how to target three of the weakest banks on our list that we think will crater in value — including a step-by-step explanation of what to do for maximum profit potential …

* Plus, the two rock-solid (yet relatively unknown) global banks that look like a great bargain right now — with all the necessary details like how to buy them!

This is it folks. 2013 is right around the corner, and I can’t think of a better time for you to put the Weiss Ratings to work for you. So click here — or give my customer service staff a call at 800-291-8545 — right away!

Until next time,

Mike

Mike Larson graduated from Boston University with a B.S. degree in Journalism and a B.A. degree in English in 1998, and went to work for Bankrate.com. There, he learned the mortgage and interest rates markets inside and out. Mike then joined Weiss Research in 2001. He is the editor of Safe Money, Safe Money's Crisis Trader, and LEAPS Options Alert. He is often quoted by the New York Sun, Washington Post, Reuters, Dow Jones Newswires, Orlando Sentinel, Palm Beach Post and Sun-Sentinel, and he has appeared on CNN, Bloomberg Television and CNBC.

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