Moody’s Investors Service cut its outlook for the U.S. banking system to “negative” from “stable.” In less than a week, Silvergate Capital,The reason is that three banks, Silicon Valley Bank (SVB) and Signature Bank, which are affiliated with SVB Financial Group, went bankrupt.
In a report released late Wednesday, Moody’s said federal regulators had “announced that they would protect all SVB and signature bank depositors, but the rapid and significant increase in bank depositor and investor confidence that led to this action”. The decline highlights risks to U.S. banks’ asset-liability management exacerbated by the sharp rise in interest rates.”
U.S. authorities launch measures to protect depositors after SVB bankruptcy
Moody’s is reviewing six U.S. banks for downgrade: First Republic Bank, Western Alliance Bancorp, Intrust Financial, UMB Financial, Zions Bancorp and Comerica.
Original title:Moody’s Cuts US Banking System to Negative After Lender Failures
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