JPMorgan Chase, Wells Fargo and BofA Hit With Negative Ratings Outlook As Moody’s Says US Government Has Weaker Capacity To Support Big Banks - The Daily Hodl
Three US banking giants have just had their ratings downgraded to "negative" by Moody's. Moody's Investor Service downgraded JPMorgan Chase, Wells Fargo and Bank of America to negative ratings after previously classifying them as stable, MarketWatch reports....
- Moody's Investor Service has downgraded the ratings of JPMorgan Chase, Wells Fargo, and Bank of America to "negative" from "stable."
- The downgrade is due to concerns about the US government's ability to support systemically important banks.
- JPMorgan's downgrade is partially attributed to its complex capital markets business and potential risks to creditors.
- Moody's suggests that JPMorgan's potential upgrade depends on maintaining strong performance and capital levels.
- Despite the downgrade, all three banks' stock prices have performed well in November.
- Moody's links the downgrade to a previous downgrade of the US sovereign credit rating.
- US banks are facing significant risks of deposit flight and a recession, according to Moody's.
The sentiment of the article is negative, as it discusses the downgrade of the banks' ratings and highlights potential risks and challenges they face.