Banks don't have bulletproof balance sheets. They own a bunch of loans with leverage. If loan values drop significantly, banks can pretty easily go to zero. Most banks have residential real estate loans, so it's really a bet that homes don't drop in price 20%+ suddenly.
What banks have the most bulletproof balance sheets or reserve ratios (out of my area of competence here)?
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That wouldn't be a problem though if people kept paying their mortgages right?
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PNCs is pretty solid. They don’t dabble in much housing, and sat on the sidelines during the 08 crisis
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I'm a fan of First Republic Bank
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