Everbank does come out as a C on the Street.com, but so does Discover, Bank of Internet, HSBC, Citi, and Wells Fargo. In fact some came out worse. I don’t think there’s any doubt that many banks still have some bad loans on their books, but how effective any rating agency is going to be at determining actual exposures and risk is questionable. A better measure might be through the grapevine, so networking with people connected to the industry would be useful. In the case of smaller private banks (Everbank?), the security of the parent company would be a leading indicator. However, I too may be more inclined to believe a negative report, as opposed to a rosy one, even if it’s only for my own peace of mind.
Regarding foreign currencies, and foreign bank accounts, Everbank has a range of CDs in foreign currencies, but the rates are pretty dreadful. The advantage is that they are FDIC insured, whereas the originating countries won’t provide the same level of cover. Anyone can open a bank account with a foreign bank. Many have branches offices in the US (HSBC, Citi, Lloyds, USB, Credit Suisse), and offshore (Guernsey, Jersey, Isle of Man etc) which usually simplifies the application process because they are used to dealing with foreigners. Going to a provincial bank in France is asking for trouble. Avoid all provincial branches of all banks if you have international dealings. Don’t forget, many banks abroad have also been exposed to toxic loans, so due diligence needs to be extended. I’d add to that French banks (and other foreign banks) traditionally have a much more conservative approach to lending, so may be safer. Banks exposed to Eastern Europe may pose a problem.
Major banking centers in Europe are Luxembourg, Switzerland, Frankfurt and London. The Irish Government has underwritten all banks in Ireland, but it has the same problem as the FDIC. The Bank of England would be the safest in the UK. BTW, Northern Rock which was nationalized by the UK government does not open accounts for foreigners.
