Moody's puts six US banks on watch for potential downgrade

[IronLionZion]

https://www.cnn.com/2023/03/14/investing/moodys-us-banks-downgrade



New York
CNN
—
Moody’s Investors Service placed six US banks on review for potential credit rating downgrades late Monday, in the wake of last week’s collapse of Silicon Valley Bank.

The credit ratings firm also downgraded Signature Bank deep into junk territory following that bank’s failure. Ratings downgrades can make it more expensive for companies to borrow money.

Moody’s warned it could similarly downgrade First Republic Bank (FRC), Zions (ZION), Western Alliance (WAL), Comerica (CMA), UMB Financial (UMBF) and Intrust Financial. The firm cited the “extremely volatile funding conditions for some US banks exposed to the risk of uninsured deposit outflows.”

The move comes after shares of regional banks got clobbered on Monday even after the US federal government stepped in with a massive intervention designed to protect depositors and prevent further bank runs. Regional bank shares rebounded in premarket trading on Tuesday.

No need to panic or make rash decisions. It's good to be cautious

[Wounded Bear]

1. I'm in a credit union, relatively immune to a lot of that...nt

[Ocelot II]

2. Credit unions are the way to go.

[yardwork]

3. Unfortunately, if there's a panic or a widespread bank failure, it will affect us all.

Sure, most of us won't lose our deposited funds, but remember 2008. A systemic crash has a ripple effect.

Stupid Republicans and stupid voters who believe the regulation fantasies. I remember Trump celebrating his deregulation of transportation, finance, the CDC, etc. Now we're facing all the predictable disasters.

[dutch777]

5. Regulate them appropriately and tax excessive profits. Dumb to give them all the advantages that

the little guy never gets and yet is at risk to pay for them to play.

[yardwork]

14. Exactly! This is the con the GOP plays.

Why millions of voters go along with it I will never understand. Apparently they're emotionally triggered to vote Republican. The whole thing is a con. Republicans are out to get our money, period. Everything else is window dressing.

[2naSalit]

8. Since the 70s...

Except a short spell during one of the several times I made the mistake of moving to California, I could not join a CU because, at the time, you had to belong to one group or another. So I got a Wells Fargo acct. Big mistake. Moved to a different state and was able to join a CU again, never looked back. Still with that CU, since 1993.

[JohnSJ]

4. Moodys?

[IronLionZion]

7. The Moody Blues - Nights In White Satin

[JohnSJ]

12. All of them. Great music

[getagrip_already]

6. Investors have the most to lose in the short run... Of course you could still share the losses...

A lot of us could be investors and not even know it. How many of us have "diversified portfolios" managed by others? Do your funds have shares of these banks? Does your investment house hold shares in other funds and suddenly need to clean their books?

Hopefully, if you do it's just a small part of an overall portfolio fund. But if you have a fund focussed on financial sector assets, you could take a beating along with direct investors.

This is how the public gets tangled up in investor losses. Lots of shady transfers can occur by an investment house that is trying to balance its books. Shares that become junk could be sold into a fund you hold to prop up another fund.

We need very strong controls on these bastards. They are out for bonuses and commisions, not yur financial success.

[Takket]

9. I'm in Comerica but we'll below the 250k FDIC guarantee.

[IronLionZion]

10. The main issue are businesses who are above the FDIC insurance threshold

if they can't make payrolls or pay their bills, it's going to ripple through the economy.

Er... I mean... big government regulations are killing jobs! Deregulate!

[yaesu]

11. 16 banks failed under tRumps watch but not a peep from moody Moody's, interesting

it's almost like they want to manufacture a crisis like the repukes just to crash the economy.

[JohnSJ]

13. During the bush financial implosion both Moody's and the S&apple failed miserably in their ratings