Everbank Rated C by Weiss

[powayseller]

I am *not* putting even one cent into Everbank.

I started researching it, and within 10 minutes, became concerned that they
1) issue ARMs and I/O loans
2) are headquartered in FL
3) issue ARMs and I/O residential loans in FL.

I paid $14.99 for the Weiss rating. I do this for my life insurance and banks. Who wants to own a life insurance policy or hold a bank account with an insolvent company?

Weiss rated Everbank as C. Asset quality and liquidity are Very Weak, and rated 0 on a scale of 0 to 10.

Non-performing loans are 9% of loans, 93% of capital. Residential mortgage loans are 66% of assets. Considering what is happening in FL, I would think Everbanks’ solvency is seriously compromised.

A Weiss C rating means “…this institution will likely remain healthy as long as the economic environment avoids the extremes of inflation or deflation. In a prolonged period of adverse financial or economic conditions, however, we feel this institution may encounter difficulties maintaining its financial stability.”

World Savings is rated B, meaning in a severe recession or major financial crisis, its financial strength should be reviewed (2/06).

If anybody else orders any Weiss reports, could you share your findings here?

Now I need to see how I can invest in foreign currencies. Perhaps as a European Union citizen, I can open bank accounts in Europe.

[privatebanker]

Hi Powayseller,

Thank you for looking into that. Even though your deposits there may be insured by FDIC, it takes a long, complicated process to get your money back if the bank were to fold.

[powayseller]

I’m hoping that some other forum members, who tell us they are flush with cash from selling their homes and earning big bucks, would come forward and put down $14.95 to research their own bank, and post the results. That would be swell, and will benefit the entire piggington community.

[Diego Mamani]

Thank you for sharing PS.

I have short-term funds parked in ING Direct, Emigrant Direct, and Citibank’s e-Savings account. I checked the ratings for free at Bauer:

http://www.bauerfinancial.com/home.html

There are also free ratings at Bankrate.com, but I don’t know how reliable they are.

[VCJIM]

PS,

It’s funny you bring up opening a bank account in the EU. My girlfriend is French, so I asked her to ask her parents if I can open a savings account in France. This was largely out of pure interest, but if it was a good deal I would consider doing it. Anyway, her father inquired at the bank. They seemed to have no clue about whether an American Citizen (I realize your situation is different) can open an account there. They were completely unhelpful!

[powayseller]

bauerfinancial wants to charge me $10 for the first report (Everbank) and $4 for each additional report. How did you get yours free?

Weiss is the best rating agency. Bauer is rating everbank as 4 starts! They have severe banking issues, rated as E by Weiss who actually studied it, and bauer is just glossing over it. Weiss gave E ratings to many banks that went under, that had been rated A by AM Best up to the day they went under.

If you really want to know about the safety of your bank, get the Weiss report. Otherise, you are basically at the mercy of the FDIC.

[4plexowner]

I had a challenge getting my money back from Everbank.

The check that Everbank sent me when I redeemed a CD got lost in the mail.

When it was obvious to me that the check was lost, I started making phone calls.

They gave me two choices before they would cut another check:
1. obtain a surety bond to cover the check(ie, spend 3% of the value of the check in order to obtain the check – like that makes any sense!)
2. wait 6 months

They also chastised me for asking for a check instead of a wire transfer (I’m not kidding!).

I ended my final conversation with them by saying that I was going to start an e-mail campaign notifying all the analysts that recommend them of my experience.

2 minutes later (literally) the representative called me on my cell phone to let me know that a new check was being sent immediately.

~

I like some of the products that Everbank offers but they aren’t likely to see any of my money again.

[34f3f3f]

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.

[34f3f3f]

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.

[34f3f3f]

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.

[34f3f3f]

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.

[34f3f3f]

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.

[patientrenter]

[quote=qwerty007]….The Bank of England would be the safest in the UK….[/quote]

The Bank of England is the central bank for the UK. If you can open an account there, I’d be as surprised as if you told me you could open an account with the Federal Reserve.

I’ve had an account with Everbank since before Powaysellers’s first post about them back in 2006. So far, so good. And the FDIC insures them. [I think unlimited FDIC insurance is irresponsible, but it means I don’t have to care about the quality of the banks I give money to.]

[patientrenter]

[quote=qwerty007]….The Bank of England would be the safest in the UK….[/quote]

The Bank of England is the central bank for the UK. If you can open an account there, I’d be as surprised as if you told me you could open an account with the Federal Reserve.

I’ve had an account with Everbank since before Powaysellers’s first post about them back in 2006. So far, so good. And the FDIC insures them. [I think unlimited FDIC insurance is irresponsible, but it means I don’t have to care about the quality of the banks I give money to.]

[patientrenter]

[quote=qwerty007]….The Bank of England would be the safest in the UK….[/quote]

The Bank of England is the central bank for the UK. If you can open an account there, I’d be as surprised as if you told me you could open an account with the Federal Reserve.

I’ve had an account with Everbank since before Powaysellers’s first post about them back in 2006. So far, so good. And the FDIC insures them. [I think unlimited FDIC insurance is irresponsible, but it means I don’t have to care about the quality of the banks I give money to.]

[Author]

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