Can You Know If Your Bank is Safe?
I wrote last week in “Is Your Bank Safe? Is it Sound?” about BankRate.com’s bank rating service, Safe & Sound®.
Yesterday, Mish Shedlock wrote, “Don’t Count on the “Safe & Sound” Rating of Bankrate.com“, in his blog “Global Economic Trend Analysis” … and he offers a good reason.
On July 25, 2008, First Heritage Bank, N.A., Newport Beach, CA, was closed by the Office of the Comptroller of the Currency OCC and passed into Federal Deposit Insurance Corporation FDIC receivership without advance notice. The bank had a 3 out of 5 star rating from Bankrate’s “Safe & Sound” rating service.
This is enough to make one wonder about the reliability of bank rating services.
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