Moody’s changed the outlook for the US banking system to “negative”
The decision was made due to the “rapidly deteriorating operating environment” following the bankruptcy of Silicon Valley Bank, Signature Bank and Silvergate Bank.
Moody’s Investors Service reported that the outlook for the US banking system was changed from “stable” to “negative”.
As noted, the decision was made due to the “rapid deterioration in the operating environment” after the bankruptcy of Silicon Valley Bank, Signature Bank and Silvergate Bank.
“While the Treasury, the Fed and the Federal Deposit Insurance Corporation have announced that all SVB and Signature Bank depositors will receive full compensation, the rapid and significant decline in depositor and investor confidence highlights asset-liability management risks among U.S. banks, which are exacerbating increase in interest rates,” the statement said.
Recall that the US authorities closed the New York Signature Bank following the larger Silicon Valley Bank (SVB).
After that, the President of the United States of America, Joe Biden, addressed the citizens of the United States and stated that “Americans can be sure that the banking system is safe.” He noted that his administration took immediate action after the banking incident.
As reported, global financial stocks lost $465 billion due to the bankruptcy of SVB.
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