After the financial crisis a few years back, and especially in light of the recent banking news coming out of Cyprus, many investors are scared to invest in big banks because they don't have a good way to gauge the risk that they're getting involved with.
In this video, Motley Fool financial analysts Matt Koppenheffer and David Hanson discuss one great metric for assessing the risk with a particular bank: its leverage ratio. They also discuss how some of the biggest banks in the nation, such as Bank of America (NYSE:BAC) and Wells Fargo (NYSE:WFC), stack up against other banks, both domestic and international.
David Hanson has no position in any stocks mentioned. Matt Koppenheffer owns shares of Bank of America and Morgan Stanley. The Motley Fool recommends Wells Fargo. The Motley Fool owns shares of Bank of America and Wells Fargo. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.