Moody’s Downgrades Entire Banking System To ‘Negative’

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Daily Wire

Moody’s Investors Service, one of the three prime rating services, downgraded its rating of the entire banking system from stable to negative in response to the SVB banking crisis.

Moody’s, which predicted a coming recession, had warned it would downgrade Comerica, First Republic, Intrust Financial, UMB, Western Alliance, and Zions Bancorp after downgrading Signature Bank.

 

“We have changed to negative from stable our outlook on the U.S. banking system to reflect the rapid deterioration in the operating environment following deposit runs at Silicon Valley Bank (SVB), Silvergate Bank, and Signature Bank (SNY) and the failures of SVB and SNY,” Moody’s stated.

Moody’s criticized First Republic for its “high reliance on more confidence-sensitive uninsured deposit funding” and “low level of capitalization” compared to its competitors, and pointed out that the institution retained a substantial amount of deposits above the FDIC’s insurance limit, making its funding profile “more sensitive to rapid and large withdrawals from deposits.”

[Valin]

Is it possible for Grand Pa to screw this up any more?

[Geee]

13 minutes ago, Valin said:

Is it possible for Grand Pa to screw this up any more?

yes

[Valin]

@Geee

To quote the late great Mose Allison "Excuse me while I slit my wrist."

[Valin]

 

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‘Utter Incompetence’: European Officials Accuse US Of Ripping Up Banking Rules With SVB Bailout

European officials are enraged at the U.S. for its decision to bail out Silicon Valley Bank, according to the Financial Times.

European financial regulators have ripped their American counterparts’ decision to bail out Silicon Valley Bank (SVB) in the wake of its collapse, claiming they violated their own standards in doing so, according to the Financial Times. They are particularly frustrated at the decision to cover all deposits when they were only supposed to guarantee up to $250,000.

A senior eurozone official expressed their shock at the “total and utter incompetence” of U.S. authorities and called them out for previously advocating to end bailouts during “long and boring meetings,” according to the Financial Times.

 

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Yellen grilled by senators on bank failures, government response

Treasury Secretary Janet Yellen told Congress on Thursday the U.S. "banking system is sound" after two bank failures stirred economic fears.

Yellen, who testified before the Senate Finance Committee about President Joe Biden's proposed budget, began her remarks by addressing the abrupt collapse of Silicon Valley Bank in California and Signature Bank in New York.

"I can reassure the members of the committee that our banking system remains sound, and that Americans can feel confident that their deposits will be there when they need them," she said. "This week's actions demonstrate our resolute commitment to ensure that depositors' savings remain safe."

[Valin]

6 hours ago, Geee said:

Yellen grilled by senators on bank failures, government response

Treasury Secretary Janet Yellen told Congress on Thursday the U.S. "banking system is sound" after two bank failures stirred economic fears.

Yellen, who testified before the Senate Finance Committee about President Joe Biden's proposed budget, began her remarks by addressing the abrupt collapse of Silicon Valley Bank in California and Signature Bank in New York.

"I can reassure the members of the committee that our banking system remains sound, and that Americans can feel confident that their deposits will be there when they need them," she said. "This week's actions demonstrate our resolute commitment to ensure that depositors' savings remain safe."

 

Ma. 17 2023

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