There are 10 banks that are risky just like Silicon Valley Bank. A lot of folks want us to believe that what happened at Silicon Valley Bank is unlikely to happen at other Banks. The reason for that is they're under the impression that nobody else has this similar kind of exposure that they do to startups or Venture Capital Money freezing up. But the sad reality is there is a Formula that we can use and this is not a foolproof formula.

It's not a guarantee that these banks are going to have trouble, but it is a Formula That gives us an idea of how do other Banks compare to the Silicon Valley Bank and the way the formula works. And I'm going to very much simplify this because it's very, very complicated is we're going to take something known as the A O C I. So let's draw. Uh, let's hold on a second.

Let's go. Uh, where's my little pencil here? Um, grab my pattern. There we go. All right, we're going to take the A O C I.

This stands for accumulated other comprehensive income income. So if the income is negative, potentially a problem, right we're going to take that number and we are going to divide it by the total Capital So the total sack of cash these companies have minus that loss and we're going to come up with a ratio Important, we want to know what that ratio is because whoever has the highest ratio would imply greater Financial Risk right? So let me make this a little bit more clear because I Understand when you see this formula init at first it looks complicated. Okay, so the way it works again is aoci over uh, total capital minus aoci. So in other words, if my losses are ten dollars and I have a hundred and ten dollars and my aoci is 10, Well, then the ratio here is 10 over 100.

10, right? Positive or negative doesn't really matter. In this case, we'll just call it negative because Aoci in this case, is a loss. so it's negative. Okay, that is simple.

I don't want you to get lost there at all. It's basically just a ratio and the bottom line is, the bigger that number the worse. Okay, very very simple. Now in English what does this mean what this means is, what kind of losses do we have? Uh, and when we take those losses, uh, how does that compare to the cash bag left after we consider those losses? So in other words, once we realize those losses, how much money we got left? Man, that's all I Want to know losses divided by how much money left and then the bigger the percentage of losses compared to how much money is left.

The riskier right? So bigger percentage Bad. That's simple. That's what we're trying to do. And so Bloomberg put together this phenomenal list of banks that, uh, that have, uh, they put together 10 Banks And in this list of 10 Banks they show us which banks are potentially, uh, you know, looking at the worst sort of ratios and I'm going to show you exactly those.

So these are the worst ten according to Bloomberg These were their numbers, not mine. so don't sue me bro. The number 10th worst bank was Prosperity Bank share out of Houston Texas Uh, they had a ratio of negative point one percent actually seems pretty nominal. The bank has somewhere around 37 million dollars in assets.

Okay, well that's not that bad. So you kind of get get the picture there on one side you're gonna see hey, how many assets do they have, right? In that case, it was like 37 million or whatever. Uh and and then how does it compare? How do their losses compare to that, right? That's all we're doing here. We're trying to make it very, very simple.

Okay, now let's look at the next one and keep in mind we're going to find Silicon Valley Bank on this list. But what do I want you to pay attention to is where on the list is Silicon Valley Bank and which bank is actually worse than Silicon Valley Bank and I Hate to say it, it's a pretty damn popular one. All right. Ready for this.

All right. Number two: First Foundation Negative One percent. You can see that right here. Negative One percent First Republic Bank Negative One point Nine percent that is a San Francisco Bank in California First Foundation was the Dallas Texas Branch Now I do have sort of a trick by the way.

and and I don't know if this is like like mean or evil, but if you're trying to get your money out of a bank, I think one of the best things you could do is if you go queue up at the bank is say you need to make a deposit. Uh, maybe that's evil, but uh, it's what I would be thinking about doing. It's like hey, I need to make a deposit uh and then like go deposit like twenty dollars into one account and go withdraw a ton of money out of another account. You see what I'm saying I don't know I think you might be able to to skip the line a little bit next New York Community Bank Corp Negative 6.6 assets.

Uh, we're at 90, uh, 90 mil over here. What do we got over here? Dime Community dime Community Sitting at 7.5 what's the next one? Sandy Spring Bank Corp eight point two percent next one Pacific Premier Bank Corp from Irvine California Negative 8.7 percent customers Bank Corp Negative 10.4 percent Silicon Valley Bank Negative 10.5 percent See where it's sitting like that's pretty close to some of these other ones. Again, doesn't necessarily mean the other ones are going to hit a bank run, right? but 10.5 percent? Okay, you ready for this next one in a worse position than Silicon Valley Bank Columbia Financial 10.5 percent To the negative. And here it is.

you're ready. You ready for this. This is a good one. You ready for this one.

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Oh no, it's actually Ally Financial Ally Financial sits at negative 24 Ally Folks Ally Yikes. Like everyone pitches Ally online. Ally a Detroit Michigan Bank shows an aoci per Bloomberg a 4.5 4.05 Bill total Equity of 12.8 a total assets of 191.8 but you're sitting at uh, uh, this this uh, this this negative 24 ratio. the way they've calculated this at Bloomberg I think that's that's crazy.

Uh, so so absolutely wild. Uh, but it's something to pay attention to. And I Want to be clear when I talked about total Capital to talk about Bank Equity That gets a little bit more complicated. We don't have to go into this.

These numbers are straight from Bloomberg I Didn't make up these numbers I didn't calculate the numbers I just copied them over. Okay, I want to explain them And this is not to say that definitely Ally is at greater risk then Silicon Valley Bank It's to say that wow, There is risk in the banking system and that risk could be where you are and so you want to be careful. There's a reason I keep saying on this channel if you're at a smaller Bank get out and I know people are are you know hating on me saying things like oh my gosh, you're just creating fun But look, we've played this game many times before. I put my money where my mouth is I took my money out of the small Banks Over a month ago I had money and exposure to small Banks Over a month ago before any of this disaster because I'm like rates are getting to the level where we could potentially start risking bank failures I do not want to be a victim.

So a month ago I moved my money. Proof is in the pudding. Uh and look I know some people are like oh, but you know that's the kind of fear that creates a bank I Don't care like ultimately you have to do what's best for yourself and that's protecting your own assets. It's not our problem.

If a bank fails, it's their problem. It's not your problem. It's like playing with your livelihood is not what you should do. otherwise you end up on the streets and bankrupt.

So keep that in mind. These are 10, uh, a potential coming bank bailouts listed by uh by Bloomberg uh or or potentially other banks at risk Just per this aoci, the actual measure is aoci divided by total Equity Capital minus aoci. That's the the fair value measure that they use. Remember, this does not mean these banks are going to have to be forced to liquidate.

it, just basically means they they have a high level of paper losses. You can actually look up this money yourself at the Federal Financial Institution examination. Council National Information Center good Lord That's a mouthful. Apparently this evidence is taken from the Consolidated financial statements for holding companies Fiscal year Y-9c filed with the FED Oh yeah, that's real easy to look up.

but anyway, good luck.