Connect with us

Hi, what are you looking for?

Politics

Moody’s Puts First Republic, Five US Banks on Downgrade Watch


From FINANCE.YAHOO.COM

(Bloomberg) — Moody’s Investors Service placed First Republic Bank and five other US lenders on review for downgrade, the latest sign of concern over the health of regional financial firms following the collapse of Silicon Valley Bank.

Western Alliance Bancorp., Intrust Financial Corp., UMB Financial Corp., Zions Bancorp. and Comerica Inc. were the other lenders put on review by Moody’s. The credit rating company cited concerns over the lenders’ reliance on uninsured deposit funding and unrealized losses in their asset portfolios.

The move comes after US bank stocks were pummeled, even as the government rescued SVB’s depositors and unveiled a new lending facility to support lenders’ financing and prevent more bank runs. Moody’s also downgraded Signature Bank and withdrew its credit rating, following the lender’s closure over the weekend.

San Francisco-based First Republic dropped a record 62% on Monday, while Phoenix-based Western Alliance tumbled an unprecedented 47%. Dallas-based Comerica slid 28%.

In the case of First Republic, Moody’s said its share of deposits that exceed the Federal insurance threshold make its funding profile more sensitive to rapid, large withdrawals.

“If it were to face higher-than-anticipated deposit outflows and liquidity backstops proved insufficient, the bank could need to sell assets, thus crystalizing unrealized losses,” Moody’s said. The bank’s available-for-sale and held-to-maturity securities made up more than a third of its common equity tier-1 capital as of December, it added…. (Read more)

Loading

Advertisement. Scroll to continue reading.

You May Also Like

Politics

Country music star Travis Tritt is joining Kid Rock and firing back at Bud Light over a promotional stunt that backfired. Kid Rock went...

Politics

Ex-Fox News star Tucker Carlson just got a massive $100 million offer to join the new media company Valuetainment. CEO of Valuetainment Patrick Bet-David...

Politics

Fox News has named the next replacement host for former star anchor Tucker Carlson’s timeslot. The network has seen a massive ratings drop during...

Politics

Geraldo Rivera, the veteran television host, has been canceled by Fox News’ hit show The Five. Geraldo whined about it on social media suggesting...

Politics

Kellyanne Conway’s teenage daughter Claudia has joined Playboy as a Bunny on the magazine’s online competitor to Only Fans. Claudia has been operating a...

Politics

The Spectator editor-at-large Ben Domenech says ‘it’s absolutely ridiculous’ to hear this rhetoric from Joe Biden. Subscribe to Fox …

Politics

Texas rancher Stephanie Canales explains how President Biden’s border crisis has ‘come at a huge cost’ to their business.

Politics

House Judiciary Chairman Jim Jordan put failed Presidential candidate and the woman behind the biggest dirty trick in American politics, Hillary Clinton on notice...

Politics

Actor Tom Hanks has been named the Harvard class of 2023 commencement speaker, the university announced. Hanks, 66, will …

Politics

Legendary rapper Rick Ross has offered ex-CNN host Don Lemon a job, at Wingstop. (See Video Below) Ross said: “Just found out Don Lemon...

Advertisement
Advertisement

Facebook

Advertisement