US Bank Crisis: Poised For More 'Misery' - Moody's


 The series of Silicon Valley Bank (SVB) crises that are seen to have gradually subsided, investors began to breathe a sigh of relief and sit comfortably.

However, the warning from the international rating agency, Moody's, made investors uneasy because banks in the United States are expected to face more pressure following this crisis.

Among those facing the greatest risk are banks that have large reserves of uninsured deposits and long-term treasury bonds that have depreciated in value.

In its latest outlook, Moody's downgraded the rating for the US banking sector to 'negative' from 'stable', with a warning of a rapid deterioration in the operating environment.

He added that the pressure is predicted to continue and get worse if the Federal Reserve (Fed) continues to raise interest rates to fight inflation.

The downgrade came as banking stocks in the US and Europe rebounded from earlier sharp falls.