Moody’s DOWNGRADES U.S. Banking Giants—Is YOUR Bank On The List?
From WLT Report
Article By Vince Quill, Original Publish Date: November 20, 2023
Thought the banking crisis was over?
Moody’s, one of the main financial rating agencies, has just downgraded its outlook on several U.S. banking giants. The rating agency provided a negative outlook for J.P. Morgan & Chase, Wells Fargo, and Bank of America.
The agency cited extremely high debt in a high-interest-rate environment as the main driver of the negative outlook.
WLTR has long warned our readers to get their affairs in order before the banks inevitably collapse and the entirety of the U.S. banking system and the currency are revealed to be giant Ponzi schemes.
This isn’t financial advice, it is merely a call to educate yourself and come to your own choices about who acts as a custodian, if there is to be a custodian at all, of your hard-earned money.
Read these reports over and let us know if you are worried about the unsustainable debt situation with the banks and the broader U.S. economy:
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Morning Star featured this report from Market Watch:
Moody’s negative outlook on bank debt reflects “the potentially weaker capacity of the government of the United States of America (Aaa negative) to support the U.S.’s systemically important banks,” analyst Peter E. Nerby said in a research note published late Monday.
Moody’s kept in place its “Strong+” score for the macro profile of the U.S. banking system.
The Kobeissi Letter, a prominent financial newsletter, explained:
“US bank stocks never recovered from the regional banking crisis. Currently, US bank stocks are at record lows relative to the S&P 500. According to Moodys, major US banks are sitting on $650 billion in unrealized losses.
Meanwhile, the looming commercial real estate (CRE) crisis has small banks in question. Small banks currently hold ~70% of all CRE loans in the US, $1.5 trillion of which need to be refinanced by 2025. Markets are not convinced the crisis is over.”
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Reuters reports:
Still, Moody’s cautioned that banks with sizable unrealized losses that are not reflected in their regulatory capital ratios are vulnerable to a loss of confidence in the current high-rate environment.
The sweeping report comes against the backdrop of tightening monetary conditions after the fastest pace of interest rate increases by the Federal Reserve in decades slows demand and borrowing.
Read full article here.
WLT REPORT
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