CNBC: Fitch warns it may be forced to downgrade dozens of banks, including JPMorgan Chase
* Fitch Ratings cut its assessment of the banking industry’s health in June, a move that analyst Chris Wolfe said went largely unnoticed because it didn’t trigger downgrades on banks.
* But another one-notch downgrade of the industry’s score from AA- to A+ would force Fitch to reevaluate ratings on each of the more than 70 U.S. banks it covers, Wolfe told CNBC.
* “If we were to move it to A+, then that would recalibrate all our financial measures and would probably translate into negative rating actions,” Wolfe said.
A Fitch Ratings analyst warned that the U.S. banking industry has inched closer to another source of turbulence — the risk of sweeping rating downgrades on dozens of U.S. banks that could even include the likes of JPMorgan Chase.
The ratings agency cut its assessment of the industry’s health in June, a move that analyst Chris Wolfe said went largely unnoticed because it didn’t trigger downgrades on banks.
But another one-notch downgrade of the industry’s score, to A+ from AA-, would force Fitch to reevaluate ratings on each of the more than 70 U.S. banks it covers, Wolfe told CNBC in an exclusive interview at the firm’s New York headquarters.
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WNU Editor: Here is an easy prediction. The U.S. government and the banks are not changing their fiscal/debt/credit policies. A downgrade will happen, the only question that needs to be answered is when.
5 comments:
Good, lots more, whatever is needed. Anything to get this administration out of office. We need a market collapse like the 1970's but on steroids. Slam the GenZ's, Millenials and late Boomers back into reality and show what terrible, incompetent government can do to you.
Well, it doesn't instill much confidence when the 5 largest shareholders in the federal reserve are the 5 biggest private banks, who then use their voting power at the fed to print infinite amounts of money and give it to themselves to cover their illegality and losses.
tell us anon 2:05
put in Trump who is heading to jail for RICO? What that your answer?
Or the Trump who gave a huge tax break to the very wealthy?
Village keeps losing people. No one mentioned Trump on this thread. 7:20 has TDS real bad. I bet their last words years and years from now won't be "I love you", but "but Trump, but Trump!" Only the dude will be speaking Russian! LMAO!
Again 7:20 no mention of Trump here. But are you suggesting we reelect Biden? I mean... we probably can't do much worse aside from his V.P.
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