Posted on 08/08/2023 3:08:40 AM PDT by Oldeconomybuyer
(Reuters) - Moody's cut credit ratings of several small to mid-sized U.S. banks on Monday and said it may downgrade some of the nation's biggest lenders, warning that the sector's credit strength will likely be tested by funding risks and weaker profitability.
Moody's cut the ratings of 10 banks by one notch and placed six banking giants, including Bank of New York Mellon, US Bancorp, State Street and Truist Financial on review for potential downgrades.
"Many banks' second-quarter results showed growing profitability pressures that will reduce their ability to generate internal capital," Moody's said in a note.
"This comes as a mild U.S. recession is on the horizon for early 2024 and asset quality looks set to decline, with particular risks in some banks’ commercial real estate (CRE)portfolios."
Moody's said elevated CRE exposures are a key risk due to high interest rates, declines in office demand as a result of remote work, and a reduction in the availability of CRE credit.
The agency also changed its outlook to negative for eleven major lenders, including Capital One, Citizens Financial and Fifth Third Bancorp.
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.
(Excerpt) Read more at reuters.com ...
“Community Banks serve the Community “
Kamala
Actual quote:
Fox News
August 5, 2023
“’And so for years we have worked to expand investment in community banks because, you see, community banks specialize in providing loans and financial assistance to small business owners, in particular those in overlooked and underserved communities, including rural communities. And as the name suggests, community banks are in the community,’ the vice president proclaimed.”
Bidenomics.
At the pace of things, I’d say by early 2024...the whole campaign will revert to a economic decline for the nation, more bank failures, and a supply problem where Chinese-produced items aren’t being off-loaded on the west-coast.
A “mild” recession how kind of you reuters, pedo joe thanks you
Media: What’s your favorite flavor, Mr. President.?
“Kamala Harris is no intellectual giant, but her statement is correct.”
Correct- Bump
Word of caution, there are relatively small banks who have signed on with the ChiComs and their ESG and social scoring system.
I’ve been watching those situations locally. If you asks a number of bank officers about this. They don’t have a clue what you’re talking about. But when you find one who says they know what ESG is, thy are already on board with the ChiComs.
Fed Bailouts is the only way the “too big to fail” banks will survive what is coming. The next step is CBDC, God please help us avoid that one. That step will enslave the world financially. It is the globalist banker’s wet dream.
The local bank that I have done business with since I was a boy (not same owners now) are good people. It is regional in scope now but not one of the big players. When I asked them if they knew anything about ESG, none of them knew anything about it.
I have already seen credit card companies testing their analytic power by declining purchases (from my debit card, not credit card) for firearm parts. Another story.
Just think how bad it must really be if they felt it necessary to acknowledge it at all.
Holy Smokes, I thought you were kidding and made that up!
The Fox article has this subhead rejoinder: “‘But do they also offer services as it relates to banking?’ Speaker Kevin McCarthy’s deputy spokesman Chad Gilmartin inquired sarcastically”
What “THEY” say about the deal.....probably lies, or they know as little about what’s happening as we..
https://www.federalreserve.gov/cbdc-faqs.htm
She’s a special kind of arrogant, entitled, stupid.
(Just think how bad it must really be if they felt it necessary to acknowledge it at all)
Yep.
🛐🙏✝️
Thanks for link. Had not seen it before.
My local bank, just changed software this past weekend. The local bank officers did not know the details last week. Possibly they can see them now, I have not been to the bank this week, but will go today to deposit a check.
I know and trust the local bank officers.
No, I don’t “trust” the Fed. It is like most Huge Organizations.
Bidenskyyyyynomics has taken over Bidenskyyyyville and it’s “boomin’”. A real snap, crackle, corn popper.
She is such an idiot. LOL.
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