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Watch Out, Zombie Banks Still Haven't Been Buried

In February 2009, I examined the top 12 U.S. banks and gave a generally bullish outlook for them, pointing out that at a fraction of net asset value, their shares were mostly good bargains.

Only a few banks had longer-term problems because of the poor qualities of their loan portfolios. I termed those "zombie banks," and warned that they might not emerge from public ownership.

Well thanks to U.S. Federal Reserve Chairman Ben Bernanke's misguided monetary policies, I have been proved wrong. Even the zombies have emerged, and investors have made excellent returns on holding their stocks since 2009.

However, at this point, investors should beware: Those zombie banks are still among us and they pose an even greater threat to unknowing investors.

Let me explain.



To find out more about the risk zombie banks pose, read on...