DOWNGRADES and WARNINGS: Moody’s Outlook on 27 American Banks

The Organic Prepper ^ | August 10, 2023 | Daisy Luther

[Diana in Wisconsin]

Right on the heels of seeing a downgrade of the creditworthiness of the United States itself, Moody’s has downgraded ten small to medium banks across the country, citing “financial strain” and “strains that could erode their profitability.” Six more banks are under review, and another eleven have been shifted from “stable” to negative.

If you still have all your money in the banking system, you’re quickly running out of time to change strategies and preserve some of your wealth. Which banks got downgraded?

The ten banks which were downgraded are:

Commerce Bancshares

BOK Financial Corporation

M&T Bank Corporation

Old National Bancorp

Prosperity Bancshares

Amarillo National Bancorp

Webster Financial Corporation

Fulton Financial Corporation

Pinnacle Financial Partners

Associated Banc-Corp

According to the Federal Reserve, the largest of these is M&T, which is the 19th largest bank in the country. More banks are under review.

But the downgrades may not stop there. Moody’s has said that six more banks are “under review.”

Those banks are:

Bank of New York Mellon Corporation

Northern Trust Corporation

State Street Corporation

Cullen/Frost Bankers

Truist Financial Corporation

U.S. Bancorp

Other banks have been given a “negative outlook.”

The bad news doesn’t stop with these 16 banks. Another eleven have been shifted from stable to negative:

PNC Financial Services Group

Capital One Financial Corporation

Citizens Financial Group

Fifth Third Bancorp

Huntington Bancshares

Regions Financial Corporation

Cadence Bank

F.N.B. Corporation

Simmons First National Corporation

Ally Financial

Bank OZK

According to the Washington Post:

And Moody’s assigned a negative outlook to 11 more banks, meaning their ratings could be downgraded in the medium to long term. That group also included some of the nation’s biggest lenders, including PNC Financial Services Group, Capital One and Citizens Financial.

*SNIP*

Of course, “experts” are saying there’s nothing to see here.

I don’t think that I’m jumping the gun when I say that things are going downhill fast. But financial experts in the mainstream sector seem to feel like this is not concerning.

Christopher Marinac, director of research at Janney Montgomery Scott, said that the news would have little impact on customers.

‘I don’t think there is a risk at all. You cannot expect banks to have zero credit problems and zero losses all of the time.’

He added that customers of the banks affected could trust their money is ‘safe.’

The mainstream is saying that we don’t need to move our money. And as we saw before, a massive de-banking can actually cause a bank to go under.

I am not a financial advisor, but I can tell you that I personally am NOT keeping all my financial eggs in one basket – er – bank account. You need to make your decisions based on strategies that work for you, not in the hopes of supporting the banks. You need to find advisors who are NOT involved with your bank – of course, the banks’ advisors will tell you everything is fine. It’s game on for the economic collapse.

It would be nice if I could say that I see a way for things to get better. But between “Bidenomics,” banks tumbling like a row of dominos, the looming threat of CBDCs, and rampant inflation, I just cannot give a positive prediction.

You are the only person who can make decisions solely in the best interest of yourself and your family. You cannot expect the banks to be looking out for you or the government to watch your back.

These downgrades from Moody’s ARE the warning. A wise person will heed it.

[SaveFerris]

(I expect to see more banks go under this fall)

I’ve recently been saying that the BidenDepression 2023 could start as early as September, 2023-Spring, 2024

Which the latter would make it BidenDepression 2024.

It’s just a guess, admittedly

There’s no way that this disaster can continue

[Vermont Lt]

My daughter’s rate is 2.9%. She wants to move, but rates around here are 7%. That would crush their payments.

I want to sell my home, but at the prices there is virtually nowhere to go.

The economy will freeze because no one can “move.”

[Alberta's Child]

The banks didn’t borrow those funds for 30-year terms to make 30-year loans, though. See the details of the failure of Silicon Valley Bank for an example of why these banks are in trouble.

[Alberta's Child]

The banks aren't run by idiots.

I never said they were. I said the industry has the deck stacked against it. That’s why even banks run by smart people fail.

[CodeToad]

“The banks didn’t borrow those funds for 30-year terms to make 30-year loans, though.”

Yes, they did.

[NorthMountain]

I said the industry has the deck stacked against it.

I provided evidence that the deck isn't stacked against it. You did not tell the whole story.

[Obadiah]

Bail. Right. And go where? Stuff even more in your mattress? Buy more precious metals which are only semi-liquid?

[Alberta's Child]

You are always going to have people “moving” permanently … either selling a home to downsize, or selling upon the death of the owner. You won’t see too many amateur investors flipping houses for a while, though.

[Obadiah]

Again, and do what? (See post #18.)

[grey_whiskers]

FREepmail.

[Alberta's Child]

… and paying points and fees when he does so, along with a new interest rate which is tied to his credit score, and if his property has declined in value the banks won't issue a refinance loan anyway.

Points and fees are the only costs the borrower needs to consider here, and over the life of a loan with a 30-year amortization they are very low.

Nobody is going to refinance a 30-year fixed-rate mortgage unless the interest rate is now LOWER than the original one. And the odds of the property appraising at a lower value in an environment of falling interest rates are almost zero in most areas of the U.S.

[NorthMountain]

the odds of the property appraising at a lower value in an environment of falling interest rates are almost zero in most areas of the U.S.

That statement is inconsistent with observed reality.

[sauropod]

BFLR

[Alberta's Child]

I don't know what "observed reality" you are talking about.

If I can afford to pay $2,000/month on my mortgage, I can afford to buy a home with a $300,000 mortgage at 7% or a $475,000 mortgage at 3%.

What did you think was driving the escalation in home prices after the COVID fiasco?

[NorthMountain]

I don't know what "observed reality" you are talking about.

I'm not surprised. Many factors drive the price of residential real-estate. Actual home-owners are aware of this.

[CFW]

“I’ve recently been saying that the BidenDepression 2023 could start as early as September, 2023-Spring, 2024”

---

I’m guessing along the same time-line. And I’m arranging things in my household/finances accordingly. If I’m wrong, no harm caused. If I’m right then I’ll be glad I made those plans.

[SaveFerris]

Lord willing, I’ll be able to pay off most of what I need this morning month but I still have a car needing parts that are difficult to get and another needs minor work.

The first one would still have to go to the body shop - most of that paid by other party’s insurance once I can obtain the parts.

Then we’ll see how the rest of the year goes.

[Chickensoup]

what about the safety of credit unions we have a small one here. Do they work with banks or are they their own animals.

[Jimmy Valentine]

Portfolio runoff and tighter underwriting will cure most of this. Overleveraging has always been both a temptation and a problem for banks.

[Alberta's Child]

I’ve been involved in residential and commercial real estate investment for almost 25 years. I know a thing or two about how this works.