Fitch warns it may be forced to downgrade multiple (more than 70) banks, including JPMorgan

Aug 15 (Reuters) - An analyst at Fitch Ratings warned that U.S. banks, including JPMorgan Chase (JPM.N), could be downgraded if the agency further cuts its assessment of the operating environment for the industry, according to a report from CNBC on Tuesday.

In June, Fitch lowered the score of the U.S. banking industry's "operating environment" to AA- from AA, citing pressure on the country's credit rating, gaps in regulatory framework and uncertainty about the future trajectory of interest rate hikes.

Another one-notch downgrade, to A+ from AA-, would force Fitch to reevaluate ratings on each of the more than 70 U.S. banks it covers, analyst Chris Wolfe told CNBC.

Lenders were rocked earlier this month after Fitch's peer Moody's downgraded 10 mid-sized U.S. banks and warned it may cut ratings of several others...

We, the people, will pay for failing banking sector one way or another. It will either be a massive government bailout or out of control inflation or a combination of both. There is no soft landing.

The combination of federal government fiscal irresponsibility, the Federal Reserve and quite honestly poorly managed woke banks are to blame. Crazy government spending due to a hoax Scamdemic that continues today has led to massive money printing. That leads to inflation. Combine that with Biden’s assault on the petroleum industry which has lead to even more inflation by increasing the cost of every manufactured good and many services. Combine that with the greatest regulatory increase in the history of America and there is even more increased business costs passed onto consumers. That’s more inflation.

The Fed raises interest rates to combat inflation and banks are slow to change their asset allocations. Banks are sitting there with worthless bonds. Many are technically insolvent right now. To make things worse, banks are owed trillions on commercial real estate mortgages that they have issued, but lazy ass employees are unwilling to be productive and go into the office. They rather sit at home, unsupervised and watch porn. Consumers have over $1 trillion in credit card debt owed to banks because of inflation and an unwillingness to downgrade their lifestyles to pay their bills with their monthly earnings.

It ain’t going to be pretty. The course of action with the least impact on everyday Americans is to allow banks to fail. No more bailouts. Furthermore, government spending needs to be radically cut. Make the people responsible pay for this: woke bankers and lazy ass government employees. Send them to the unemployment line. Hard working Americans will get by quite fine without both.

naw...us plebes do not get that insider information

Some here are already saying it is not a big deal, but there are several of the ‘too big to fail’ banks on that list.

So that means what the Fed and the Treasury did was just kick the can down the road for a bit. It did not work.

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.