Posted on 08/22/2023 4:47:44 AM PDT by EBH
Aug 22 (Reuters) - S&P Global cut its credit ratings and outlook on multiple U.S. regional banks on Monday, saying higher funding costs and troubles in the commercial real estate (CRE) sector would likely test their credit strength.
A sharp rise in interest rates by the U.S. Federal Reserve is fueling liquidity concerns as costs tied to funding deposits surge, the S&P said in a summarized note.
The agency cut its ratings on Associated Banc-Corp (ASB.N) and Valley National Bancorp (VLY.O) on funding risks and higher reliance on brokered deposits, while UMB Financial Corp (UMBF.O), Comerica Bank (CMA.N) and KeyCorp (KEY.N) were downgraded on large deposit outflows and prevailing higher interest rates.
KeyCorp shares were down marginally in premarket trading.
The outlook of S&T Bank and River City Bank was cut to "negative" from "stable" by the S&P, citing higher CRE exposure.
The agency's action will make borrowing costlier for the ailing banking sector that is looking to shake off the effects of the crisis from earlier this year, when the collapse of Silicon Valley Bank and Signature Bank sparked a loss of confidence and led to a run on deposits at several regional lenders.
(Excerpt) Read more at reuters.com ...
Our CRE and banking, in conjunction with all time CC debt, low savings, inflation, and China’s bubble should be fun…
Oh you are not kidding. Things are about to get so crazy real financially that the 2008—2010 looks like a cake walk.
And what many won’t realize, is this all leads to world war and resets of world leadership.
They’re going to find out…
LOL!
Not going to be soft landing as the WH hoped 50% of small businesses report we are in a recession.
War? Not falling for that again. What if they declared war and no one showed up? I believe we should save our Alphas for rebuilding this country instead of using them for cannon fodder. What will we be saving anyway?
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