Bank AI

<div class="textg" style="text-align: justify; font-weight: lighter; line-height: 1.3em; font-size: 15px; border-radius: 3px; color: #80909a; padding: 10px; background-color: #F4F6F9; margin-bottom: 15px;">
  Neither the author, Ruholamin Haqshanas, nor this website, The Tokenist, provide financial advice. Please consult our&nbsp;<a href="https://tokenist.com/terms-of-service/" style="text-decoration:underline;color:#3c7b7b" target="_blank" rel="noopener noreferrer nofollow" class="deco-link">website policy</a>&nbsp;prior to making financial decisions. 
</div> 
<p class="has-drop-cap">Credit rating agency Fitch said Wall Street banks, including JPMorgan, <a aria-label="facing potential downgrades (opens in a new tab)" href="https://www.reuters.com/business/finance/fitch-warns-it-may-be-forced-downgrade-multiple-banks-including-jpmorgan-cnbc-2023-08-15/" target="_blank" rel="noopener noreferrer nofollow" class="deco-link">face potential downgrades</a> if the industry’s operating environment continues to deteriorate. JPMorgan’s stock fell 2.6% on the reports to $150.64 per share, with other lenders seeing similar price movements.</p> 
<h3 id="fitch-to-reasses-bank-ratings-in-case-of-further-operating-environment-downgrades">Fitch to Reasses Bank Ratings in Case of Further Operating Environment Downgrades</h3> 
<p>Shares of Wall Street giant JPMorgan fell more than 2.6% at the market open on Tuesday after Fitch Ratings issued a warning that some US banks could be downgraded if the <a href="https://tokenist.com/investing/bond-ratings/" rel="noopener noreferrer nofollow" class="deco-link">credit rating</a> agency further reduces its evaluation of the operating environment for the sector. JPMorgan was named among those banks facing downgrade risks.</p> 
<p>Earlier this year, Fitch trimmed the rating of the US banking industry’s operating environment from AA to AA- due to pressure on the country’s credit rating, regulatory issues, and uncertainty about the Federal Reserve’s monetary policy.</p> 
<p>If the agency were to make another downgrade to A+ from AA-, it would force the firm to reassess ratings on each of the over 70 US banks it covers, analyst Chrise Wolfie told CNBC.&nbsp;</p> 
<blockquote class="wp-block-quote"> 
 <p>“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.</p> <cite>– said Fitch Ratings analyst Chris Wolfe. </cite> 
</blockquote> 
<div class="cta-referral"> 
 <img src="https://tokenist.com/wp-content/themes/thetokenist/assets/img/del/cta-referral-1.png" alt="" class="cta-referral__img" loading="lazy" decoding="async"> 
 <div class="cta-referral__text"> 
  <p>Join our&nbsp;<a href="https://t.me/thetokenist" target="_blank" rel="noopener noreferrer nofollow">Telegram group</a>&nbsp;and never miss a breaking digital asset story.</p> 
 </div> 
</div> 
<h3 id="moody-s-downgraded-ten-small-and-mid-sized-banks">Moody’s Downgraded Ten Small and Mid-Sized Banks</h3> 
<p>Fitch’s warnings come just a week after another major credit rating agency, Moody’s, downgraded 10 small and mid-sized banks and warned that similar demotions could be imposed for seventeen other lenders.</p> 
<p>Meanwhile, Fitch also downgraded the US long-term credit rating at the start of August, citing political dysfunction and rising debt loads. The move was fiercely criticized by several business leaders, including JPMorgan CEO Jamie Dimon, given the resolution of the <a href="https://tokenist.com/the-us-debt-ceiling-crisis-explained/" rel="noopener noreferrer nofollow" class="deco-link">debt ceiling crisis</a> two months ago.</p> 
<p>Fitch, one of the top 3 credit rating agencies, <a href="https://tokenist.com/fitch-ratings-downgrades-us-debt-to-aa-citing-erosion-of-governance/" rel="noopener noreferrer nofollow" class="deco-link">slashed the US credit grade</a> from AAA to AA+ – a downgrade that <a href="https://en.wikipedia.org/wiki/United_States_federal_government_credit-rating_downgrades" target="_blank" aria-label="last happened more than 10 years ago (opens in a new tab)" rel="noopener noreferrer nofollow" class="deco-link">last happened more than 10 years ago</a>. Fitch said tax cuts, spending programs, and numerous economic headwinds have resulted in growing budget deficits, while mid-term challenges tied to entitlement expenses remain overlooked.&nbsp;</p> 
<p>Shares of other Wall Street banks also opened lower on Tuesday, with Bank of America, Truist Financial Corporation, and HSBC Holdings tumbling 2.23%, 3.16%, and 2.64%, respectively.&nbsp;</p> 
<div class="cta-sub js__cta-sub"> 
 <div class="cta-sub__start" data-step="1"> 
  <div class="cta-sub__title"> <strong>Finance is changing.</strong> 
  </div> 
  <div class="cta-sub__subtitle">
    Learn how, with Five Minute Finance. 
  </div> 
  <div class="cta-sub__excerpt">
    A weekly newsletter that covers the big trends in FinTech and Decentralized Finance. 
  </div> <button type="button" class="btn">Try it out (for free)</button> 
 </div> 
 <div class="cta-sub__form" data-step="2" style="display: none;"> 
  <script type="text/javascript" src="https://app.getresponse.com/view_webform_v2.js?u=QcLhh&amp;webforms_id=zw3Wv"></script> 
 </div> 
 <div class="cta-sub__result" data-step="3" style="display: none;"> 
  <div class="cta-sub__title">
    Awesome 
  </div> 
  <div class="cta-sub__caption">
    You’ve subscribed. 
  </div> 
  <div class="cta-sub__greeting">
    You’re well on your way to being in the know. 
  </div> 
 </div> 
</div> 
<p><em><strong>Do you think bank stocks could face significant risks if Fitch goes on to downgrade the industry? Let us know in the comments below.&nbsp;</strong></em></p> 
<p>The post <a rel="noopener noreferrer nofollow" href="https://tokenist.com/jpmorgan-down-2-6-after-fitch-warns-downgrade-could-be-coming/">JPMorgan Down 2.6% After Fitch Warns Downgrade Could Be Coming</a> appeared first on <a rel="noopener noreferrer nofollow" href="https://tokenist.com">Tokenist</a>.</p>

JPMorgan Down 2.6% After Fitch Warns Downgrade Could Be Coming

Table of Contents

Tokenist

Other articles published on Aug 15, 2023

Breaking: Vitalik Reveals All Ethereum L2's Have Backdoors

XRP’s Historical Upward Price Pattern Repeats, Bull Run Now?

High ADA TVL Signals Strong Bullish Trend: Trader

Ripple’s XRP is More Efficient Than Bitcoin and Ethereum: Analyst

Former SEC Official Anticipates Resignation of Gary Gensler

Crypto Custodian Prime Trust Files for Chapter 11 Bankruptcy Protection

Join our free newsletter for daily crypto updates!