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

[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

[PerConPat]

Agree...Commercial real estate loans are the powder kegs under the security of many banks.

[CFW]

https://www.theepochtimes.com/article/64-us-bank-branches-file-to-shut-down-in-a-single-week-are-you-affected-5535924

“US Banks File to Shut 64 Branches in a Single Week—Are You Affected?”

“Big banks such as PNC Bank and JPMorgan Chase have filed to close several branch offices in multiple states amid a troubling pattern of rising branch shutdowns in recent years.

Between Nov. 12 and 18, several banks filed to close branch locations, with PNC Bank with the most filings, according to data from the U.S. Office of the Comptroller of the Currency. Pittsburgh-based PNC Bank filed for 19 branch closures—five in Pennsylvania, four in Illinois, three in Texas, two each in Alabama and New Jersey, and one each in Indiana, Ohio, and Florida.

JPMorgan Chase followed closely with 18 filings—three in Ohio, two each in Connecticut and South Carolina, and one each in 11 states, including New York, Illinois, Florida, and Massachusetts.”

[mewzilla]

And it won’t just happen in the US...

[EBH]

there’s 4 in Ohio for Citizens. My branch is closing in Berea, Ohio.

Impression is they are not reporting ALL the branches that are scheduled to close.