Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

JPMorgan Chase, Wells Fargo and BofA Hit With Negative Ratings Outlook As Moody’s Says US Government Has Weaker Capacity To Support Big Banks
The Daily Hodl ^ | 11/19/23

Posted on 11/22/2023 9:29:10 AM PST by EBH

Three US banking giants have just had their ratings downgraded to “negative” by Moody’s.

Moody’s Investor Service downgraded JPMorgan Chase, Wells Fargo and Bank of America to negative ratings after previously classifying them as stable, MarketWatch reports.

Analyst Peter E. Nerby of Moody’s said that the worsening outlook on bank debt was due to “the potentially weaker capacity of the government of the United States of America (Aaa negative) to support the U.S.’s systemically important banks.”

In particular, JPMorgan’s downgrade was partially because the bank runs a “complex” capital markets business that may post “substantial” risks to its creditors.

A potential upgrade for JPMorgan “would depend on sustaining strong and stable performance and capital levels” above its competitors, Moody’s says.

Despite the downgrade from Moody’s, all three banks’ stock prices are in the green for November, so far.

The agency also said that the downgrade of the banks’ ratings was in line with a previous downgrade of U.S. sovereign credit rating, which was also bumped down from stable to negative.

In a research note released last quarter, Moody’s said that US banks were facing “significant risk” of deposit flight due to interest rate and asset-liability management (ALM) risks.

Moody’s, which controls 80% of the global ratings industry along with Standard & Poors

(Excerpt) Read more at dailyhodl.com ...


TOPICS: Business/Economy; Extended News; Government
KEYWORDS: bigbanks; bofa; jpmorganchase; moodys; wellsfargo
Navigation: use the links below to view more comments.
first 1-2021-24 next last
Ya'll seen this reported anywhere else?
1 posted on 11/22/2023 9:29:10 AM PST by EBH
[ Post Reply | Private Reply | View Replies]

To: EBH

When this collapse happens, it will make 2008 look like child’s play.


2 posted on 11/22/2023 9:34:04 AM PST by TheWriterTX (🇺🇸✝️🙏🇮🇱)
[ Post Reply | Private Reply | To 1 | View Replies]

To: TheWriterTX

Downgrades happening all around...

Bidonomics ....? This is nuts.


3 posted on 11/22/2023 9:36:29 AM PST by EBH (America Blackmailed, The True Story of the World War...Coming Soon (1/21-))
[ Post Reply | Private Reply | To 2 | View Replies]

To: EBH

How long before Moody’s executives are raided by the FBI and/or the IRS?
Because it’s obvious. Their minds just aren’t right.


4 posted on 11/22/2023 9:42:16 AM PST by Leaning Right (The steal is real.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: TheWriterTX

WWIII will save us…


5 posted on 11/22/2023 9:44:36 AM PST by EEGator
[ Post Reply | Private Reply | To 2 | View Replies]

To: Leaning Right

this trip down is going to be wild...and not wonderful

I was concerned before

Now I am getting really scared.

Everything is not alright


6 posted on 11/22/2023 9:45:45 AM PST by EBH (America Blackmailed, The True Story of the World War...Coming Soon (1/21-))
[ Post Reply | Private Reply | To 4 | View Replies]

To: EBH

Most assuredly the federal government has less capacity to intervene with help for the big banks, should they falter, because the federal government has too too much debt problems of its own, with particular thanks to Joe Biden.


7 posted on 11/22/2023 9:47:35 AM PST by Wuli ( ,)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Wuli

The US government has proven they can have infinite deficits if needed to bail out the big banks.

When you have a Federal Reserve bank in your basement there are no rules.


8 posted on 11/22/2023 9:50:00 AM PST by cgbg ("Creative minds have always been known to survive any kind of bad training." Anna Freud.)
[ Post Reply | Private Reply | To 7 | View Replies]

To: cgbg; Wuli

Reverse Repo Draining Fast! What Happens When It’s Gone?

The Reverse Repo has been quietly injecting money into the bond market since the debt ceiling was suspended in June. There is now just $912B remaining, down from nearly $2.3 trillion just a few months ago. Now the question on everybody’s mind, what happens when it gets to zero? Joe Brown from @HeresyFinancial joins me to talk about what happens next.

https://youtu.be/bTNFLD0w4s4?si=u0XQKBGY4Mkw8ydO


9 posted on 11/22/2023 9:52:48 AM PST by EBH (America Blackmailed, The True Story of the World War...Coming Soon (1/21-))
[ Post Reply | Private Reply | To 8 | View Replies]

To: EBH

Excellent Joe Brown video—thanks.

He and I agree—he just explains it better.

;-)


10 posted on 11/22/2023 10:39:48 AM PST by cgbg ("Creative minds have always been known to survive any kind of bad training." Anna Freud.)
[ Post Reply | Private Reply | To 9 | View Replies]

To: EBH
a previous downgrade of U.S. sovereign credit rating,

Don't here the media talking about this aspect of Bidenomics.

11 posted on 11/22/2023 10:43:43 AM PST by 1Old Pro
[ Post Reply | Private Reply | To 1 | View Replies]

To: EBH
In a research note released last quarter, Moody's said that US banks were facing “significant risk” of deposit flight due to interest rate and asset-liability management (ALM) risks.

So what?...Why worry? SVB, Signature, First Republic depositors were protected by the likes of the BFTP etc. weren't they?

This is the official position held by the Alfred E. Neuman institute for Fiscal Stupidity.

12 posted on 11/22/2023 10:50:13 AM PST by PerConPat (A politician is an animal which can sit on a fence and yet keep both ears to the ground.- Mencken)
[ Post Reply | Private Reply | To 1 | View Replies]

To: EBH

Rut Roh


13 posted on 11/22/2023 10:50:48 AM PST by CPT Clay
[ Post Reply | Private Reply | To 1 | View Replies]

To: EBH

I have a significant amount deposited in one of those banks (decline to say which), and I don’t know how to withdraw it because of the disgusting withdrawal limit mandated by the government.


14 posted on 11/22/2023 11:05:09 AM PST by Avalon Memories (Liberalism is a philosophy of sniveling brats. -- P.J. O’Rourke)
[ Post Reply | Private Reply | To 1 | View Replies]

To: cgbg

I agree it is a great interview and explanation of why we should be very concerned.


15 posted on 11/22/2023 11:36:04 AM PST by EBH (America Blackmailed, The True Story of the World War...Coming Soon (1/21-))
[ Post Reply | Private Reply | To 10 | View Replies]

To: Avalon Memories

See post #8


16 posted on 11/22/2023 11:36:40 AM PST by EBH (America Blackmailed, The True Story of the World War...Coming Soon (1/21-))
[ Post Reply | Private Reply | To 14 | View Replies]

To: PerConPat

While I agree that the FDIC will bail out depositors—even above the 250K limit as we have seen in the past year—there is a risk for bank stock (equity) holders.

That is the basis for the lower rating.

Most banks are technically insolvent if they had to liquidate everything immediately. In fact many have commercial real estate liability alone that substantially exceeds their total equity.


17 posted on 11/22/2023 11:49:11 AM PST by cgbg ("Creative minds have always been known to survive any kind of bad training." Anna Freud.)
[ Post Reply | Private Reply | To 12 | View Replies]

To: Avalon Memories

I take it you are talking about ACH transfers from your bank account to a different bank that you have an account with. Banks are able to set their own transfer out limits. If your money center bank has draconian transfer out limits, write a paper check. Before the financial crisis hit in 08, I was ping ponging money between a money center bank(MCB) and my CU for better CD rates. Then out of the blue the MCB put a $2K limit on transfers out about 6 months before the financial crisis hit. That ticked me off. I had to drive 100 miles to the nearest MCB branch office to close out my account. I wasn’t in any danger of exceeding the FDIC insurance limit. It just smelled bad, and I was right..


18 posted on 11/22/2023 11:52:33 AM PST by EVO X ( )
[ Post Reply | Private Reply | To 14 | View Replies]

To: EBH

But, but, but... Biden does NOT want America first...He wants us last. Only the people who hate our country matter to President Sniffer.


19 posted on 11/22/2023 11:54:59 AM PST by GOPJ (Ignorant but arrogant is a sad way to start an adult life. Victor Davis Hanson on Ivy college grads)
[ Post Reply | Private Reply | To 3 | View Replies]

To: Avalon Memories
Not that the FDIC is an ironclad guarantor of your accounts; but, unless you are a celebrity/silicon valley bigwig etc., hope you are keeping up with the 250k account rules.
20 posted on 11/22/2023 11:59:24 AM PST by PerConPat (A politician is an animal which can sit on a fence and yet keep both ears to the ground.- Mencken)
[ Post Reply | Private Reply | To 14 | View Replies]


Navigation: use the links below to view more comments.
first 1-2021-24 next last

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.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson