Moody’s downgraded the rating of the US banking system from “stable” to “negative”, citing “a sharp deterioration in the operating environment”
Moody’s Investors Service say the reason for this is the failure of several key banks, which led to US regulators bailing out depositors and other institutions hit by the crisis.
“We have changed our outlook on the US banking system from stable to negative to reflect the rapidly deteriorating operating environment following the outflow of deposits at Silicon Valley Bank (SVB), Silvergate Bank and Signature Bank (SNY), as well as the bankruptcy of SVB and SNY,” it said. in a Moody’s post.
Analysts believe that even with the support measures that Biden previously announced (the country’s authorities emphasize that the failure of several important banks will not lead to the failure of others), new US banks with “unrealized losses or uninsured depositors” may be at risk. Earlier, the Federal Reserve backed a $25 billion bailout program and promised that depositors of the recently bankrupt SVB and Signature would have full access to their funds.
