{"id":563574,"date":"2023-03-14T18:01:25","date_gmt":"2023-03-14T15:01:25","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/moodys-weighs-downgrade-for-six-us-banks-following-svb-collapse\/"},"modified":"2023-03-14T18:01:25","modified_gmt":"2023-03-14T15:01:25","slug":"moodys-weighs-downgrade-for-six-us-banks-following-svb-collapse","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/moodys-weighs-downgrade-for-six-us-banks-following-svb-collapse\/","title":{"rendered":"#Moody\u2019s weighs downgrade for six US banks following SVB collapse"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3f9d0650414\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3f9d0650414\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/moodys-weighs-downgrade-for-six-us-banks-following-svb-collapse\/#Moodys_weighs_downgrade_for_six_US_banks_following_SVB_collapse\" >Moody\u2019s weighs downgrade for six US banks following SVB collapse<\/a><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"Moodys_weighs_downgrade_for_six_US_banks_following_SVB_collapse\"><\/span>Moody\u2019s weighs downgrade for six US banks following SVB collapse<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<p><img decoding=\"async\" src=\"https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2023\/03\/firstrepublicbank_Getty.jpg?w=900\" \/><\/p>\n<div>\n<p>Moody\u2019s Investors Service is weighing a credit downgrade for six U.S. banks following the second- and third-largest bank failures in the nation\u2019s history.<\/p>\n<p>The credit rating firm said Monday that the regional banks are \u201cexposed to the risk of uninsured deposit outflows\u201d in the wake of Silicon Valley Bank collapse, which prompted fears that wealthy depositors might move their money to larger institutions.\u00a0<\/p>\n<aside class=\"ad-unit ad-unit--mr1_ab\"><\/aside>\n<p>Moody\u2019s will review ratings for San Francisco\u2019s First Republic Bank, Phoenix-based Western Alliance Bancorporation, Dallas-based Comerica Bank, Kansas City\u2019s UMB Financial, Utah\u2019s Zions Bank and Wichita-based Intrust Financial.<\/p>\n<p>The firm said that First Republic Bank has substantial unrealized losses on its investments and a low level of capitalization compared to its peers. Because the bank has a \u201cmaterial\u201d share of deposits that are above the Federal Deposit Insurance Corporation\u2019s (FDIC) $250,000 insurance limit, it faces an elevated risk of rapid and large withdrawals, according to Moody\u2019s.<\/p>\n<p>\u201cIf it were to face higher-than-anticipated deposit outflows and liquidity backstops proved insufficient, the bank could need to sell assets, thus crystallizing unrealized losses on its [securities],\u201d <a rel=\"nofollow noopener\" target=\"_blank\" href=\"http:\/\/moodys.com\/research\/Moodys-places-First-Republic-Banks-ratings-under-review-for-downgrade--PR_474733\">Moody\u2019s analysts wrote<\/a>.\u00a0<\/p>\n<p>Regional banks\u2019 shares saw huge selloffs on Monday before recovering the next day. First Republic\u2019s shares plummeted 62 percent on Monday, then rose 49 percent on Tuesday.\u00a0<\/p>\n<p>Federal regulators shuttered San Francisco\u2019s Silicon Valley Bank following a bank run from its tech-focused clients who were concerned about the bank\u2019s hefty unrealized losses on long-term treasury bonds, which took a hit due to the Federal Reserve\u2019s interest rate hikes.<\/p>\n<p>Regulators also closed down New York\u2019s Signature Bank and guaranteed that depositors at both banks would get their money back through a fund that is paid for by fees on banks. The Fed launched an emergency lending program to make sure banks have enough cash to fulfill withdrawals.<\/p>\n<aside class=\"ad-unit ad-unit--mr2_ab\"><\/aside>\n<p>Moody\u2019s analysts noted that the Fed program is an \u201coffset to these funding risks.\u201d\u00a0<\/p>\n<\/div>\n<p>Copyright 2023 Nexstar <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">Media<\/a> Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.<\/p>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/news\/\" target=\"_blank\" rel=\"noopener\">News category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/thehill.com\/business\/3899531-moodys-weighs-downgrade-for-six-us-banks-following-svb-collapse\/\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Moody\u2019s weighs downgrade for six US banks following SVB collapse Moody\u2019s Investors Service is weighing a credit downgrade for six U.S. banks following the second- and third-largest bank failures in the nation\u2019s history. The credit rating firm said Monday that the regional banks are \u201cexposed to the risk of uninsured deposit outflows\u201d in the wake&#8230;<\/p>\n","protected":false},"author":1,"featured_media":563575,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2023\/03\/firstrepublicbank_Getty.jpg?w=1280","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[141254,134355,141293,71939,134343,141294,109134,141295,134661,134447,141296,133498,141297,134438,141178],"class_list":["post-563574","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-signature-bank","tag-1230-report","tag-bank-run","tag-banks","tag-campaign","tag-collapse","tag-credit","tag-downgrade","tag-energy-environment","tag-energy-and-environment","tag-failure","tag-in-the-know","tag-moodys","tag-prevention-cures","tag-silicon-valley-bank"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/563574","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=563574"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/563574\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/563575"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=563574"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=563574"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=563574"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}