Fitch warns it may be forced to downgrade dozens of banks, including JPMorgan Chase

CNBC ^ | AUG 15 2023 | Hugh Son

[RomanSoldier19]

A Fitch Ratings analyst warned that the U.S. banking industry has inched closer to another source of turbulence — the risk of sweeping rating downgrades on dozens of U.S. banks that could even include the likes of JPMorgan Chase .

The ratings agency cut its assessment of the industry’s health in June, a move that analyst Chris Wolfe said went largely unnoticed because it didn’t trigger downgrades on banks.

[bert]

There you have it.......

Bank mortgages depend on property Insurors to maintain the value of the collateral real estate in disaster.

The Insurors have learned the very hard way that in Florida and California, risk is such that the properties are not insurable. The banks are then in a perilous situation. Uninsured, the bank’s collateral has no value

So, the end game is no new mortgages.

[C210N]

This one is really good too, similar lines...

Homes are built for Banks. People, not so much.

[DoodleBob]

Uh huh…

Why haven’t you vended in all your worthless fiat currency to this quarter’s Freepathon?

[CodeJockey]

And yet the markets are on a roll. Up around 18% YTD for the S&P 500. Go figure.

[Jimmy Valentine]

The entire banking industry needs to refocus. Basic banking requires a conservative outlook

[dfwgator]

The Plunge Protection Team has been working overtime.

[pepsionice]

It’s interesting from a historical point...going back to the 1920s, bank mortgage developments, involvement of insurance companies, and the rapid escalation of property values in past twenty years. These all went hand-in-hand for almost a hundred years.

If you can’t insure a property, or the deductible is overly significant...you won’t have a relationship existing and rapid economic woes would start to occur.

I worked with a guy who owned a house in SC, that he rented out. Had huge hail storm and massive damage to one side of the house. Insurance just weren’t going to pay the $40,000 that the repair guys cited. Required a court situation, and they were forced to pay...but then as soon as the property was renovated, the insurance company gave some 60-day warning about halting their coverage.

With the way homes are built today, just begs for a review on how repairs can be done, without spending a ton of money.

[1Old Pro]

“Sweeping rating downgrades on dozens of U.S. banks is evidence of just how strong the economy is under Joe Biden.” — The Media

Up is down and down is up with the corrupt media, they lie to protect Biden and Dems.

[bert]

Repair costs are problematic.

“Gone” costs are a different kettle of fish

[AAABEST]

But just because Fitch wakes up one morning, and downgrades their opinion of the operating environment, that doesn’t mean that, overnight, the default potential of all banks have increased.

No but at the moment all banks have massive underperforming or even toxic assets and they can't make money. They cannot write new loans or sell any of the stuff they have. If they do try to sell *any of those assets it's a death sentence. Deposits are way down and their people and systems are not funtioning well.

American banks really are in a bad place. Fitch isn't just making $**t up.

[OHPatriot]

Notice the THUG breaching the door and the middle THUG on the left.

THEY BOTH are afraid the homeowner is going to SHOOT THEM IN THE NUTS!!!!!!

[DoodleBob]

Whoa, hold on there….there are a LOT of absolutes in you post.

ALL banks aren’t unprofitable. ALL banks don’t have massive underperforming or toxic assets (and what’s the differentiating factor between the two?). While net loan growth may be tepid, new loans ARE being written (they’re recycling pay downs). They CAN sell securities that are MTM without producing losses.

I bet most banks in 2Q were in the black; quarterly profit in the first quarter for all FDIC-insured banks was $79.8bn. Big and regional banks reported strong results and stocks rallied. That is rather un-gloomy.

Of course the banking sector is stuck in the mud: the govt has sucked away a trillion in liquidity via its competitor RPP, and inflation has driven up rates and choked off mortgage and capital markets fees. Thanks Bidet.

But this isn’t 1929. It isn’t even 2008.

[EvilCapitalist]

What’s scary is that everyone took the Hersheys bar, over the Silver Bar.

[AAABEST]

ALL banks aren’t unprofitable. ALL banks don’t have massive underperforming or toxic assets..

BTW, thank you for the conversation.

It's very hard for a bank, any bank, to make money right now. Consumer credit is through the roof, but we know that won't end well.

And yes, literally ALL banks are carrying paper they don't want and cannot sell. If they wrote any mortgages over the last ten years, they are stuck with that paper until maturity. Same with all the bonds they bought. The minutes they try to sell any of it, asset value disolves... and done.

The current business plans all grew up around falling interest rates and free money.

[Vaduz]

Indeed if it don’t clink it ain’t money

[Sgt_Schultze]

A covert threat to Jamie Dimon to vocally defend the bidet agenda

[SisterK]

indeed
try not paying property tax and see what happens

while I followed your link, I visited JOHN D ROCKEFELLER - ON PHARMACUTICALS -— direct and honest, confirmed by the covid scam

[SisterK]

he speaks truth

I lucked out. I was born a fiscal conservative and usually do not have a mortgage, but am my own builder and pay cash.