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September 15, 2008

I am Issuing the Warning AGAIN, and This Time it is Red-Alert
by Marty Chenard

*** My first WARNING was on July 22nd. Most of you ignored it.

*** I am issuing the warning AGAIN, and this time it is Red-Alert #2.

This is our #2 warning is about being proactive, and making sure that your bank is SAFE so you can avoid any potential non-insured losses and the agony of possible disruptions in being able to access any of your deposits in a timely manner.

1. No doubt you have read the AP Headlines this morning: "Wall Street Meltdown: Lehman Files for Record Bankruptcy, Merrill Lynch is Sold ... Lehman Brothers is filing for Chapter 11 bankruptcy and Bank of America Corp. is buying Merrill Lynch & Co. Inc." Two more Wall Street Investment firms are now gone.

2. You may not know , that on September 10th., Warren Buffett's Berkshire Hathaway Inc. announced plans to stop insuring lenders through its Kansas Bankers Surety Co. as U.S. banks failed at the fastest pace in 14 years. The news releases reported that, "The unit will no longer insure accounts beyond the Federal Deposit Insurance Corp.'s $100,000 limit per depositor and $250,000 limit on some retirement accounts, said Chuck Towle, a senior vice president at Kansas Bankers. The company will exit the business entirely over time, Towle said. "Eventually, we aren't going to be covering any deposits in the bank," Towle said.

3. This morning, CNBC.com had an exclusive interview with Wilbur Ross, chairman and CEO of WL Ross & Co. He said that he sees, "possibly as many as a thousand bank closures in the coming months." Just like Warren Buffett, Wilbur Ross is a very sharp investor.

In July, I reported about the existing banking risk to your family and yourself. I noted that Cindy and I had closed all our accounts at Wachovia and went to a sound local bank. We knew we wanted to exit Wachovia and we knew which local bank we wanted because we obtained the VERIBANC REPORTS.

Our July's "check your bank now" recommendation was ignored by 99% of our subscribers. I was miffed by the complacency. Please ... be proactive and CHECK your bank's SAFETY level and FIND another bank that is safe if necessary. If Wilbur Ross is correct about 1,000 banks closing, many of you will be sorry for not taking this important safety measure.

Here is a "What To Do" excerpt from our July 22nd. recommendation:

Check the safety of your deposits and savings accounts ...

For security, and peace of mind, you should only interested in the safest banks with the highest quality of financials with the lowest risk. For that, I use Veribanc's rating service. They have been analyzing financial institutions for decades and do a wonderful job.

The safest banks in the U.S. are their "Blue Ribbon Banks". They are the safest, and most financially sound banks in the country. (On Savings and Loans (S&L's), and Credit Unions, their top ratings are 3 Star institutions.) And yes, their reports take a hard look and investigation into what banks have "problem loans" and how serious the problem is.

I am at Home Trust Bank because they have one of the highest Veribanc ratings. I sleep at night knowing that our business and personal accounts are in good hands and that I won't be surprised by any "bad loan" news about them ... and knowing that the chances are remote of finding the bank doors locked some day and then waiting days or weeks to access our money.

On July 22nd., one of our subscribers emailed me and asked, "Did Veribanc call IndyMac correctly?"
I checked out Veribanc's reports on IndyMac and they were on the money. On Sept. 30th 2007 they down graded IndyMac to Yellow. On Dec. 31st 2007, they down graded IndyMac to RedU. A RedU is their lowest rating. They definitely gave depositors, who accessed their reports, plenty of warning.

Do it now ... check on the safety level of your bank:

A.) Check on the safety level of your Bank, S&L, or Credit Union that you are banking with.
B.) To do this, go to this link: http://www.veribanc.com/
C.) When you get to their web page, click on the link I circled in red as seen below:

D.) By clicking on the above link shown, it will take you to the Order Form page I posted below. Don't get intimidated by all the options you see below ... I will make it simple and easy for you and circle the exact things you need to do.

NOTE: There are 30 different reports that Veribanc offers. I have made it simple ... order the "Short Form Report" which I show below. It is only $25 and it tells you if your financial institution is a Blue Ribbon Bank, their total assets, equity, net quarterly income, previous quarter's rating, and the estimated Regulatory Classification (My bank's classification was "Well Capitalized" which is what I wanted to see.)

There is an "Instant Rating Report" for $10. Don't get that one ... you just get a verbal report if the bank is a Blue Ribbon or 3 Star (or other rating) and none of the other important details.

What to do: Obviously, if you get a report where your bank has serious problems, then "find a new bank ASAP". With excellent Veribanc information, there is no reason for anyone to be in a risky banking institution in this day and age.

We hope you enjoyed this special update and found it helpful. We know this information is not about the stock market, but it is about the safety of your money and future retirement funds which is one of the missions of StockTiming.com. (Feel free to use the link at the bottom of this page to forward this page to your colleagues, family, or friends.)

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Marty Chenard
StockTiming.com
Asheville, NC 28805
Tel: 828-296-1200

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Copyright © 2006-2008 Marty Chenard

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