How to know if your bank is safe

With all the gloom and doom in the banking industry, it's no surprise that consumers are scared about the fate of their deposits. But before stashing your cash under the mattress, there are some ways to investigate the health of your bank.

Though few consumers enjoy poring through financial data, taking matters into one's own hands might be the best way to protect your cash, says Andrew Karolyi, an investment-management scholar and finance professor at Ohio State University.

Banks' troubles today stem from bad loans and a lack of capital to cover those risky assets. Essentially, borrowers are unable to afford the big mortgages and other debts they took on and are becoming delinquent or defaulting. Banks are left holding the bag of sour debt and devalued assets -- hence the billions in writedowns and charge-offs over the past few quarters, followed by a scramble to raise capital.