Six lenders, including First Republic Bank, could be on the way for a potential downgrade by the ratings agency
Moody's Investors Service announced on Tuesday it has cut its outlook on the entire US banking system from stable to negative, citing a “rapidly deteriorating operating environment” despite the regulators’ efforts to shore up the industry.
The rating agency added it is placing the First Republic Bank and five other American lenders on review for a downgrade. The move comes as concerns grow over the health of the US financial system following the collapse of Silicon Valley Bank (SVB) and two other lenders.
“We have changed to negative from stable our outlook on the US banking system to reflect the rapid deterioration in the operating environment following deposit runs at Silicon Valley Bank (SVB), Silvergate Bank, and Signature Bank (SNY) and the failures of SVB and SNY,” Moody’s wrote, adding that it was expecting the Federal Reserve to continue tightening monetary policy.
Zions Bancorporation, Western Alliance Bancorporation, Comerica, UMB Financial Corporation and Intrust Financial Corporation were all on the list, Moody's revealed. The agency cited concerns over the lenders’ reliance on uninsured deposit funding and unrealized losses in their asset portfolios.
“The review for downgrade reflects the extremely volatile funding conditions for some US banks exposed to the risk of uninsured deposit outflows,” it stated.
Moody’s also slashed the debt ratings of collapsed New York-based Signature Bank deep into junk territory, withdrawing future ratings for the insolvent lender.
The downgrades come while US bank stocks have continued to plummet despite the government’s measures to support lenders and prevent more bank runs. First Republic Bank has led the sell-off, with its share price nosediving more than 60% on Monday, forcing a brief halt in trading due to volatility. Western Alliance Bancorp lost over 47% while Zions Bancorp declined by about 26%. Dallas-based Comerica dropped 28% and UMB lost more than 15%.
The turmoil was triggered by the collapse of major US tech lender SVB on Friday, after customers rushed to withdraw their deposits, which led to its shares crashing and forced the Federal Deposit Insurance Corporation to shut the bank down. SVB became the largest US financial institution to collapse since the 2008 financial crisis.
Mohsen Rezaee, a member of the Expediency Discernment Council, has said preconditions include reparations and security guarantees
For the ongoing conflict between Iran and the US to conclude, the latter must withdraw its military forces from the Persian Gulf, according to a member of the advisory board of Iran’s supreme leader.
Mohsen Rezaee, a retired major general and former commander of the Islamic Revolutionary Guard Corps (IRGC), added that Tehran would also seek full restitution for the damage done and ironclad security guarantees from Washington.
In an interview with Iran’s SNN TV broadcaster published on Saturday, the member of the Expediency Discernment Council said that the “presence of the US in the Persian Gulf has been the main cause of insecurity over the past 50 years.”
“The end of the war is also in our hands,” Rezaee claimed, naming the “US withdrawal from the Persian Gulf” among the key prerequisites. Additionally, Iran expects to receive reparations from the ...
The spokesman for the Khatam al-Anbiya Central Headquarters has accused the United States and Israel of deploying a rebranded copy of Iran’s Shahed-136 drone, designated “Lucas,” to carry out attacks on civilian infrastructure in regional countries as part of a deliberate false-flag operation aimed at framing the Islamic Republic.
In an official statement released today, the spokesman explained that after suffering military setbacks on the battlefield and failing to build political coalitions against Iran, the enemy has resorted to deception.
The statement specifically warned that the objective of these operations is to “create doubt and accuse the Islamic Republic of Iran” while sowing discord between Tehran and its neighbors, thereby undermining the legitimacy of Iran’s defensive actions.
The spokesman pointed to a series of “suspicious attacks” in recent days on facilities in friendly neighboring countries, including Turkey, Kuwait, and Iraq, which Western media outlets and hostile ...
The Islamic Revolution Guards Corps (IRGC) has announced the execution of the 51st wave of Operation True Promise 4, launching missile strikes against US military installations across the region in retaliation for ongoing American-Israeli aggression against the country.
The IRGC announced the latest wave was carried out using a combination of liquid-fuel and solid-fuel missiles against US terrorist army forces at the Al Kharj Air Base in Saudi Arabia.
According to the IRGC statement, Al Kharj base served as the "origin of aggressions against the Islamic homeland," functioning as the staging ground for US F-35 and F-16 fighter jets involved in attacks on Iran.
The base also houses fuel supply aircraft and serves as the main hub for American AWACS surveillance planes.
Concurrently, the spokesman for the Khatam al-Anbiya Central Headquarters confirmed that the fiftieth wave of the operation struck multiple US terrorist army bases.
They include the Al Dhafra Air Base and Fujairah in the UAE, Jufair in ...
