SVB collapse: Moody’s says six banks under review for credit downgrades

Moody’s ITuesday’s announcement by nvestors Service was that it was examining a quarter of a dozen Banks To decide if they should be downgraded.

All six of the banks are facing “extremely volatile funding conditions” Despite the fallout from Silicon Valley Bank Dramatic failure Last week. Moody’s also has this information Looking into According to the Thebanks’ exposure to deposits that are not insured, Wall Street Journal.

The banks are:

• First Republic Bank
• Western Alliance Bank
• Zions Bancorp
• Intrust Financial
• Comerica
• UMB Financial Corp

Some six banks sustained heavy losses Monday, as investors responded to the collapse of SVB and the failure by Signature Bank, a major cryptocurrency lender, over the weekend.

SVB COLLAPSE – SIGNS of CONTAGION REGIONAL BRANKS IN DISTRESS

Shares of First Republic Bank, a San Francisco-based bank, plunged more than 73% Monday. Western Alliance Bancorp lost 65%, while Zions Bancorp saw a drop of more than 20%.

After markets opened, the pendulum swing back Tuesday and investors started buying back shares in flagging banks.

First Republic saw a 64% increase in its value after opening. Western Alliance was back 53%, while Zions grew by 22%.

The relief felt by markets was largely due to the strong federal government action to prevent banks from running, which seemed likely over the weekend. Before the Fed took action to protect depositors, there was a sigh. The federal government declared that it would support all deposits at Signature and SVB, regardless of whether they exceed the $250,000 threshold set by Federal Deposit Insurance Corporation.

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The market panic caused by the SVB collapse was felt all over the world. It raised concerns that the United States might be heading for another recession.

On Monday, the yields on U.S. Treasurys fell further, continuing declines that occurred late last week. At one point, the yield of the 10-year Treasury fell 0.2% to 3.498%. The two-year Treasury yield was down a full percentage point since Wednesday — the worst three-day plunge since 1987 after the famous crash known as “Black Monday.”