Posted on 08/10/2023 6:34:35 PM PDT by delta7
Moody’s has cut the credit ratings of ten small and mid-sized banks. The agency cited higher funding costs, rising interest rates, and increased risked due to the failing commercial real estate sector. M&T Bank, BOK Financial, Webster Financial, Pinnacle Financial, Old National Bancorp, and Fulton Financial were among the banks that received downgraded ratings. But it does not stop there. Moody’s is also reviewing six giant banks, including Trist Financial, Bank of New York, Cullen/Frost Bankers, State Street, Northern Trust, and US Bancorp, as they may also be downgraded. Eleven other banks such as Capital One, Citizens Financial, and Fifth Third Bancorp has their ratings changed to negative. Moody’s predicts a “mild recession” on the horizon for 2024. They believe the quality of assets will decline with certain banks facing increased risks due to their commercial real estate (CRE) portfolios.
“U.S. banks continue to contend with interest rate and asset-liability management (ALM) risks with implications for liquidity and capital, as the wind-down of unconventional monetary policy drains systemwide deposits and higher interest rates depress the value of fixed-rate assets,” Moody’s analysts wrote in an accompanying research note explaining the decision. The agency also noted that investors are vulnerable “to a loss of confidence.”
The US banking system is failing. Moody’s noted that rising interest rates would “exacerbate” the ongoing banking crisis, and they foresee the Federal Reserve continuing with hikes for longer than anticipated since inflation was never transitory.
The Fed maintained artificially low rates for too long, and their attempts to ease inflation by hiking rates are failing, as is the ECB’s. We will see the behemoths like JPMorgan Chase sypher in failing banks, making it easier for agencies to switch to CBDC. European banks will be the first to fail, so keep an eye on Europe.
Its not just him. Its been a sh1tshow for decades. Thank the fed allowing banks to create money out of nothing, multiple times, via frsctional reserve lending and not requiring hardly any physical deposits in banks.
15 years of financial horseshit coming due.
It will be terrible and global.
It will probably take a while, but it’s coming due.
15 years?
Since the 2008 crash.
I know the true origins predate 15 years.
I meant #5 to you.
They must destroy the banks and our confidence in the banks in order to get rid of money as we know it.
Fet ready for a no cash economy over which the government has total control.
Remember, “You will own nothing and love it”.
Or die.
PNC just posted excellent earnings, and announced that deposits had increased. State Street is mostly a custody bank, it doesn’t take deposits or make loans.
You have to wonder if Moody’s knows what they are doing.
any time i see the phrase “backed by the full faith and credit of the federal government” I have to laugh out loud.
All I know is that I work retail and the average person seems to have at least 6 credit cards. People need to stop buying so much crap that they will end up donating to Goodwill in 5-10 years just to start the whole process over again.
As long as that "mild recession" will drop house prices by at least 45%, you know, back to normal.
Till then it is all just lip service.
.
That's the "tell" right there as to why everyone is being corralled back to the office.
Now you all know.
Bidenomics in action.... taking the country down.
Economics has laws just the same as gravity.
There are three things with laws that will bite you if you think you can ignore them,
Gravity
Climate
and economics.
If you understand them, they can be used to your advantage.
If you do not understand then, you have a violent fall.
The federal reserve is run by some very vile people who are causing the ruination of our economy as well as that of Europe.
We rant against Fauci....but we have a “Fauci” in the Federal Reserve that is every bit as despicable.
Fed could easily reduce pressure by allowing banks to hold and manage other real estate until they can sell at a reasonable price. Real estate market collapses are an old game just like the stock market. Those in the know run up prices, sell at the peak, park their cash and wait for the collapse (aided by Fed regulations), and then repurchase properties at a greatly reduced price. Once their portfolio has grown and demand returns, the cycle begins again. Those at the top get wealthy while average Joe loses their home or business. Banks fail, usually because of liquidity issues. Seems to me the Fed ought to provide liquidity and maintain a fairly stable market instead of forcing a collapse, but then they and their friends wouldn’t become richer.
Thanks...
Probably bad auto loans on those overpriced bloatmobiles.
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