{"id":7439,"date":"2009-03-10T21:07:30","date_gmt":"2009-03-11T04:07:30","guid":{"rendered":"http:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/?p=7439"},"modified":"2009-03-10T21:07:30","modified_gmt":"2009-03-11T04:07:30","slug":"kicking-the-camels-habit-is-your-bank-safe-and-sound","status":"publish","type":"post","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/7439\/kicking-the-camels-habit-is-your-bank-safe-and-sound\/","title":{"rendered":"Kicking the CAMELS Habit: Is Your Bank &#8220;Safe and Sound&#8221;?"},"content":{"rendered":"<p>The FDIC developed an acroynm for the composite ratios it runs to &#8220;rate&#8221; the financial health of its member banking concerns. \u00a0 An index, ranging from one to five is calculated and the FDIC premium charged to the institution is commensurate with its CAMELS rating.\u00a0 &#8220;CAMELS&#8221; stands for:<\/p>\n<ul>\n<li>Capital Adequacy<\/li>\n<li>Asset Quality<\/li>\n<li>Management<\/li>\n<li>Earnings<\/li>\n<li>Liquidity<\/li>\n<li>Sensitivity<\/li>\n<\/ul>\n<p>The Federal Reserve Bank of San Francisco explains the CAMELS ratings and the highly-sensitive nature of the findings:<\/p>\n<blockquote><p><em>All exam materials are highly confidential, including the CAMELS. A bank&#8217;s          CAMELS rating is directly known only by the bank&#8217;s senior management and          the appropriate supervisory staff. CAMELS ratings are never released by          supervisory agencies, even on a lagged basis. While exam results are confidential,          the public may infer such supervisory information on bank conditions based          on subsequent bank actions or specific disclosures. Overall, the private          supervisory information gathered during a bank exam is not disclosed to          the public by supervisors, although studies show that it does filter into          the financial markets.<\/em><\/p><\/blockquote>\n<p>The average depositor might freak out if he discovered her bank had a 4 or 5 CAMELS rating and withdraw her deposits. How can a depositor do her homework if\u00a0 the\u00a0 bank can&#8217;t tell you its CAMELS rating ? \u00a0 The good folks at BankRate.com have developed a similar system, loosely based on the CAMELS litmus test.\u00a0 <a title=\"bankrate.com\" href=\"http:\/\/www.bankrate.com\/brm\/safesound\/brm_explain.asp\">Here is how they describe their &#8220;Safe and Sound&#8221; ratings system<\/a>:<\/p>\n<blockquote><p><em><span class=\"body\">Bankrate&#8217;s Safe &amp; Sound ratings are comparisons to both industry peer norms and standards. In a very small number of instances, operating strategies that differ from industry norms lead to ratings that are not truly reflective of an institution&#8217;s financial condition. A Safe &amp; Sound rating of one or two stars does not suggest that <a href=\"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/7439\/kicking-the-camels-habit-is-your-bank-safe-and-sound\/#more-7439\" class=\"more-link\">Read more<\/a><\/span><\/em><\/p><\/blockquote>\n","protected":false},"excerpt":{"rendered":"<p>The FDIC developed an acroynm for the composite ratios it runs to &#8220;rate&#8221; the financial health of its member banking concerns. \u00a0 An index, ranging from one to five is calculated and the FDIC premium charged to the institution is commensurate with its CAMELS rating.\u00a0 &#8220;CAMELS&#8221; stands for: Capital Adequacy Asset Quality Management Earnings Liquidity [&hellip;]<\/p>\n","protected":false},"author":15,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_crdt_document":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[8,26],"tags":[],"class_list":{"0":"post-7439","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"hentry","6":"category-investment","7":"category-lending","9":"no-featured-image"},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":3166,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/3166\/how-much-is-that-bloodhound-in-the-window\/","url_meta":{"origin":7439,"position":0},"title":"How much is that Bloodhound in the window?","author":"Geno Petro","date":"May 23, 2008","format":false,"excerpt":"I'm a mutt, I'll admit it--half Italian, half Heinz 57, solid C average across the board--any board.\u00a0 No papers. I may have been a little smarter (transcript wise)\u00a0had I attended\u00a0easier schools in the early years but hey, I was always\u00a0a low hanging fruit grabbing kind of guy.\u00a0 I was born\u2026","rel":"","context":"In &quot;Real Estate&quot;","block_context":{"text":"Real Estate","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/real-estate\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":2217,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/2217\/hr-3915-why-federally-chartered-banks-get-the-pass\/","url_meta":{"origin":7439,"position":1},"title":"HR 3915:  Why Federally-Chartered Banks Get The Pass","author":"Brian Brady","date":"November 13, 2007","format":false,"excerpt":"Big banks have a HUGE advantage over mortgage brokerage firms; they have the money. Federally-chartered banks also are regulated differently than mortgage brokers; they are overseen by the Office of Thrift Supervision, a successor regulator to the Federal Home Loan Bank Board. Federally-chartered banks also subscribe to FDIC insurance which\u2026","rel":"","context":"In &quot;Lending&quot;","block_context":{"text":"Lending","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/lending\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":7569,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/7569\/the-bad-bank-plancomplete-with-music-and-video\/","url_meta":{"origin":7439,"position":2},"title":"The &#8220;Bad Bank&#8221; Plan&#8230;..(complete with music and video)","author":"Tom Vanderwell","date":"March 23, 2009","format":false,"excerpt":"I've copied the announcement from the Treasury that sent the markets on a moonrocket today and thought that I would \"walk you through it\" so that we can get a better feel for whether this is a relief rally or something sustainable (and therefore what it means for mortgage rates).\u00a0\u00a0\u2026","rel":"","context":"In &quot;Group Therapy&quot;","block_context":{"text":"Group Therapy","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/group-therapy\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/straighttalkaboutmortgages.com\/wp-content\/uploads\/2009\/03\/ppip-chart.jpg?resize=350%2C200","width":350,"height":200},"classes":[]},{"id":8706,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/8706\/the-fdic-is-going-broke\/","url_meta":{"origin":7439,"position":3},"title":"The FDIC is going broke&#8230;","author":"Greg Swann","date":"June 1, 2009","format":false,"excerpt":"The Business Insider:","rel":"","context":"In &quot;Big Mother&quot;","block_context":{"text":"Big Mother","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/big-mother\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":11371,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/11371\/now-im-beginning-to-get-it-the-missing-brick-in-the-wall\/","url_meta":{"origin":7439,"position":4},"title":"Now I&#8217;m Beginning To Get It &#8211; The Missing Brick In The Wall","author":"Jeff Brown","date":"February 23, 2010","format":false,"excerpt":"My favorite Uncle, Fighter Pilot Dick, sent me this video the other day. I was flabbergasted, which is hard to accomplish lately. I then sent it to a couple of folks for whom I hold much respect, to gain their takes. Both of them are fellow Hounds, Brian Brady and\u2026","rel":"","context":"In &quot;Dirty Laundry&quot;","block_context":{"text":"Dirty Laundry","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/dirty-laundry\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":3447,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/3447\/moral-hazard\/","url_meta":{"origin":7439,"position":5},"title":"Moral Hazard&#8230;.","author":"Tom Vanderwell","date":"July 22, 2008","format":false,"excerpt":"Barry Ritholz at The Big Picture had these two comics that brought to the forefront again the issue of moral hazard. Check out the comics and then we'll talk \"on the other side.\" Okay, now some thoughts about moral hazard: The definition of moral hazard (as taken from that scholarly\u2026","rel":"","context":"In &quot;Investment&quot;","block_context":{"text":"Investment","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/investment\/"},"img":{"alt_text":"This is going to get expensive.....","src":"https:\/\/i0.wp.com\/straighttalkaboutmortgages.wordpress.com\/files\/2008\/07\/moral-hazard.jpg?resize=350%2C200","width":350,"height":200},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/7439","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/comments?post=7439"}],"version-history":[{"count":10,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/7439\/revisions"}],"predecessor-version":[{"id":7453,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/7439\/revisions\/7453"}],"wp:attachment":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/media?parent=7439"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/categories?post=7439"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/tags?post=7439"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}