Barbara Alonso had never heard of the Texas ratio until about a year ago, when, well into the financial crisis, her firm started getting more and more inquiries about the quick and easy formula for gauging the health of banks – and which are at the highest risk of failure.
“I’ve noticed a few investment banks and analysts out there who actually make it a point of publishing Texas ratios from time to time,” said Alonso, an attorney at Hunton & Williams who represents financial services firms.
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