Hawaii's Banks Stand Up to Financial Poo Storm

The November 24th Associated press headline about Hawaii’s banks http://www.honoluluadvertiser.com/article/20081124/BUSINESS/811240329/1071 should make everyone feel very lucky they live Hawaii. In fact, when I googled this headline it showed it being published in media all over the world. This is a very big feather in our States' papale (hat)! The only other state I have checked out as having a stellar banking system is Vermont! (Maybe were not such a bunch of sub third world hillbillies after all!)
Not only that, for the most part our island residents have strong work ethics and even stronger saving habits. I had heard from a reliable source many years ago, that Hilo had the highest per capita savings rate in the state. Now that high savings rate may have a lot to do with the lack of places to spend the money but nevertheless it is something to be very proud.
If readers are so inclined and have an internet connection, a site called Bankrate.com rates every banking and credit union in the United States. First Hawaiian Bank is rated as a 5 star bank with Bank of Hawaii earning a solid 4 stars. I will not sling any mud towards the others banks but will urge anyone NOT in these two banks to check out their institution to see how it rates. If anyone is tempted by the great yields being advertised by certain local institutions on checking and savings then I definitely urge you to take a little side trip to the internet and check it out. With the FDIC under a lot of stress these days I would not want my money in any bank with less than 4 stars. This year alone, over 22 banks have gone under FDIC receivership and many more are waiting in the wings for 2009.
With our two stellar banks there is NO reason to be stuffing the Bank of Sealy. At least with these two we can earn their pathetic 2% interest rate.
And that’s how you tell the difference between a sick bank and a healthy bank. The interest rate yield. If the ad says 4% on checking accounts, then run my friend, run fast to your computer and check the health of your bank. Now is not the time to be chasing high yields. High yields, especially attached to checking accounts are a huge red flag. That’s like your keiki with a 105 degree fever. Not good.
There are hundreds of “Zombie” banks in the US stumbling and lurching like legions of undead. Citibank is a prime example. Deemed to Big to Fail they got bailed out with no embarrassing questions to the CEO, (unlike the Automaker bosses and their private jet itineraries). It is a bit like a brain dead accident victim being kept alive by a heart and lung machine. I suspect that the major shareholder, the Saudi Prince, Al Waleed must have thrown a tantrum and made some ugly threats about the oil spigots if his pet bank didn’t get hooked up to the cash transfusion. Paulson and Bernanke pulled out the checkbook and hooked up the massive IV bag and did it over the weekend without the glaring scrutiny of Congress and CNBC cameras. Clever and sneaky, those ones.
If I were a UAW worker I might just be dusting off a rusty pitchfork and loading up the F150 for quick drive to Washington so I could run my mouth off about that little bailout thingy.