Friday, October 10, 2008

The U.S. Banking System is Over-Rated

In a survey by the World Economic Forum, the U.S. ranked as the 40th soundest banking system. Per Reuters:

The United States, where some of Wall Street's biggest financial names have collapsed in recent weeks, rated only 40, just behind Germany at 39, and smaller states such as Barbados, Estonia and even Namibia, in southern Africa.
and
The World Economic Forum's Global Competitiveness Report based its findings on opinions of executives, and handed banks a score between 1.0 (insolvent and possibly requiring a government bailout) and 7.0 (healthy, with sound balance sheets).
I'd put us significantly closer to a 1 these days...