Moody’s recent downgrade of fifteen of the world’s largest banks, along with JPMorgan Chase & Co.’s (NYSE: JPM) multi-billion trading loss, make it clear that certain big banks are just not as safe as depositors might have hoped. Still, consumers have to keep their money somewhere.
24/7 Wall St. has compiled a list of the safest banks to help consumers navigate through continued difficult times. The criteria were very strict. They focused on the universe of the money-center banks, super-regional banks, and banks with retail branches that encompass several states
24/7 screened for banks with a market capitalization of more than $2 billion. They further screened for banks whose share value is be less than 14 times earnings (P/E ratio). The share price to book value had to be less than 2.0. The bank had to have a minimum return on equity of 8% or more. To demonstrate how confident a candidate bank is, it had to pay its common holders a dividend yield of 2.0% or higher.
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