The bond credit ratings companies are always slow to adjust. There will be many more bank failures in the next 24-36 months. Probably every regional bank with exposure to commercial real estate should be downgraded at this point. Wall Street Silver
The Implications Of Moody’s 10 U.S. Bank Downgrades Moody’s was slow to deliver a negative take on banks, but now that it has, it will trigger a new wave of problems for already-struggling financial institutions. The credit rating agency downgraded several small and midsize banks and put larger companies, like Capital One $COF, Citizens Financial $CFG and $ALLY on negative watch. “It’s going to drive their funding costs higher, and that’s already a problem. This is going to further worsen their position from a funding cost standpoint.” @HedgeyeFIG “To shrug this off is a little arrogant. Yeah, everybody knows this, they’re getting around to it on a tremendous lag. On the other hand, it’s not nothing. It does matter.” Hedgeye
Comments _ Threads – Links
- I have CRYSTAL BALL. Just yesterday I warned commercial real estate is in danger of causing bank collapse. Office buildings are empty & worthless. Banks hold the loans on their books. Disaster waiting to happen like dominos. Now this… Wayne Root
- Last week, Moody’s Investor Services, which provides credit ratings and risk analysis for stocks, cut the credit ratings of 10 small and mid-sized banks, citing higher costs and lower profits. – Forbes Mag
- Moody’s has downgraded the credit rating of 10 more US Midsize/Regional Banks, and has warned that “downgrades are coming” for the nation’s biggest institutions, such as US Bank, State Street, and Truist. – Washington Examiner