By Arnold Kling
if one were to be told that a bank has a Tangible Common Equity ratio of under 2%, the logical response would be that said bank is a goner. Yet both Credit Agricole and Deutsche Bank are precisely there (1.41% and 1.92% respectively), and both happen to have total “assets” which amount to roughly the size of their host country GDPs
Read the whole thing. The post is primarily about precarious Canadian banks.
What you should be looking for in this environment is a very prudent bank located in a solvent country. That is the equivalent of finding an unclipped coin during the Kipper- Und Wipperzeit.