Moody's turn large banks negative

There seems to be some doubts about the US being able to support these banks - after all, the US can’t keep printing money forever

Moody’s Investors Service cut its rating outlook to negative from stable on Bank of America Corp., JPMorgan Chase & Co. and Wells Fargo & Co., but the stocks rallied Tuesday on the heels of tame inflation data.

https://www.morningstar.com/news/marketwatch/20231114332/bank-of-america-jpmorgan-chase-and-wells-fargo-shares-shrug-off-moodys-outlook-cut-to-negative-from-stable

3 Likes

Absurd. The idea that the govt would allow these banks to fail systemically is nuts. It would, without exaggeration, be the end of the world. They might let shareholders be wiped out, but that is a different thing. (See SVB)

can’t keep printing money forever

Why not?

7 Likes

Well, they can actually. Worked wonders in Zimbabwe: