Tax & Financial Tips Archive
[Back to Archive]


Date: August 12, 2008
Subject: G&G Financial Tip - "Is Your Bank or Broker on the List"

This is
G&G Associates
Tax & Financial Consulting Services

Is Your Bank or Broker on the List
"Next Big Bank Failures are Looming"

The Dow's rally last week may inject a temporary feel-good pulse into the hearts and minds of some investors. But it does nothing to remedy the massive bank losses and acute credit shortages that are strangling the U.S. economy.

So, if you're interpreting the rally as an "all-clear" signal to jump back into business as usual, I think you could be making a grave error.

Instead, whether it lasts a while longer or not, I think the rally is merely giving smart investors like you the opportunity to get a better price for many of your stocks, reduce your exposure and find safer havens for your money.

The bigger question: With big brokers and banks drowning in losses, what is truly safe?

Are they all in danger? If not, which ones?

To help answer those pressing questions — and many more, I'll give you some insight to a story from this months G&G Investment Society (GGIS) Newsletter subscription service. I guarantee some of you have banks getting C- or below on their report card. Indymac's rating turned to D- and two months later they filed Bankruptcy.

For your benefit, let me review for you the ratings scale:

A = Excellent
B = Good
C = Fair
D = Weak
E = Very weak
+ = the upper third of each grade range
- = the lower third of each grade range

And based on these ratings, here are the guidelines you should follow. If your bank is rated:

B- or higher, you should be OK where you are, in most circumstances.

D+ or lower, that's a red flag. Seriously consider moving your money elsewhere.

C+, C or C-, consider it a yellow flag and keep a close watch on your bank and monitor the rating periodically to make sure it has not been downgraded to the D range.

To become a member of the G&G Investment Society newsletter subscription, please send an e-mail to for sign up instructions.

- 1 year subscription - $99
- 2 year subscription - $169
- lifetime subscription - $399

On this list there are even larger well known banks on it that the Feds are trying to keep from you. Now, you'll eventually find out who it is, but typically when it's too late and your accounts have been frozen.

Big banks and brokers have announced massive losses, with much more to come.

But government regulators generally make it difficult for average citizens to figure out which banks or brokers are the weakest and which are the strongest.

The FDIC maintains a watch list of troubled banks that are likely to be among the next to fail, but it's strictly confidential.

The SEC keeps tabs on the nation's privately held brokerage firms, but makes it difficult for you to get the critical data you need to evaluate their finances.

Just look at what's happening all around you. The recession is still in its early phase. But already, we have one of largest bank failures in history, IndyMac Bank, and the largest brokerage firm failure in history, Bear Stearns. What will happen as the recession deepens? What will happen now that the mortgage crisis is spreading beyond subprime mortgages to the far larger market for prime mortgages?

Sign up this week for GGIS newsletter subscription service and I'll send you this list and how to keep tabs on your bank to see if yours is next. But the seriousness of the situation warrants these special steps. Every dollar you earn, save or invest could now be at stake.


Again, if you missed the last conference call, no problem. You can listen to the playback of the conference by dialing the number below:

Playback Number: (641) 715-3487
Access Code: 974124#


Gary Gray
Tax & Financial Consultant, RFC
G&G Associates
877-817-6031 toll-free
866-361-3872 toll free fax

“The remedy for fear and suffering is the truth.”

LEGAL NOTICE: This work is based on SEC filings, current events, interviews, corporate press releases and what I've learned as a financial consultant. It may contain errors and you shouldn't make any investment decision based solely on what you read here. It's your money and your responsibility. G&G Associates gets paid a commission from a membership purchase at


Tax & Financial Tips Archive
[Back to Archive]