Downgrades and Warnings: Moody’s Outlook on 27 American Banks

Right on the heels of seeing a downgrade of the creditworthiness of the United States itself, Moody’s has downgraded ten small to medium banks across the country, citing “financial strain” and “strains that could erode their profitability.” Six more banks are under review, and another eleven have been shifted from “stable” to negative.

If you still have all your money in the banking system, you’re quickly running out of time to change strategies and preserve some of your wealth.

Which banks got downgraded?

The ten banks which were downgraded are:

  • Commerce Bancshares
  • BOK Financial Corporation
  • M&T Bank Corporation
  • Old National Bancorp
  • Prosperity Bancshares
  • Amarillo National Bancorp
  • Webster Financial Corporation
  • Fulton Financial Corporation
  • Pinnacle Financial Partners
  • Associated Banc-Corp

According to the Federal Reserve, the largest of these is M&T, which is the 19th largest bank in the country.

More banks are under review.

But the downgrades may not stop there. Moody’s has said that six more banks are “under review.”

Those banks are:

  • Bank of New York Mellon Corporation
  • Northern Trust Corporation
  • State Street Corporation
  • Cullen/Frost Bankers
  • Truist Financial Corporation
  • U.S. Bancorp

Other banks have been given a “negative outlook.”

The bad news doesn’t stop with these 16 banks. Another eleven have been shifted from stable to negative:

  • PNC Financial Services Group
  • Capital One Financial Corporation
  • Citizens Financial Group
  • Fifth Third Bancorp
  • Huntington Bancshares
  • Regions Financial Corporation
  • Cadence Bank
  • F.N.B. Corporation
  • Simmons First National Corporation
  • Ally Financial
  • Bank OZK

According to the Washington Post:

And Moody’s assigned a negative outlook to 11 more banks, meaning their ratings could be downgraded in the medium to long term. That group also included some of the nation’s biggest lenders, including PNC Financial Services Group, Capital One and Citizens Financial.

Why are these banks struggling?

CBS reports:

In its report, Moody’s highlighted that some of the issues that caused the banking crisis earlier this year haven’t disappeared; banks are still at risk for depositors to withdraw their funds, while the current higher-interest rate environment is knocking down the value of investments lenders made when rates were super low.

The rating agency added that asset risks are also rising for small- and mid-sized banks, especially those with large corporate real estate (CRE) holdings.

“Elevated CRE exposures are a key risk given sustained high interest rates, structural declines in office demand due to remote work, and a reduction in the availability of CRE credit,” it noted.

Smaller banks are especially at risk, given that they have “sizable unrealized economic losses” that could cause investors to lose confidence, it stated in the Monday report.

What should you do?

If you happen to bank with any of these companies, you may be feeling pretty uneasy, and for good cause. We’ve already watched the failure of multiple banks this year, and at the time, we predicted that we had not seen the end of these closures and collapses.

I’ve written about financial preparedness here in this article. We’re watching this unfold in real-time. I cannot possibly urge you strongly enough to get your financial ducks in a row. If you haven’t invested in precious metals, this would be the time because I just don’t think our system will look the same this time next year. To learn more about this kind of wealth preservation strategy, go here.

Of course, “experts” are saying there’s nothing to see here.

I don’t think that I’m jumping the gun when I say that things are going downhill fast. But financial experts in the mainstream sector seem to feel like this is not concerning.

Christopher Marinac, director of research at Janney Montgomery Scott, said that the news would have little impact on customers.

‘I don’t think there is a risk at all. You cannot expect banks to have zero credit problems and zero losses all of the time.’

He added that customers of the banks affected could trust their money is ‘safe.’

The mainstream is saying that we don’t need to move our money. And as we saw before, a massive de-banking can actually cause a bank to go under.

I am not a financial advisor, but I can tell you that I personally am NOT keeping all my financial eggs in one basket – er – bank account. You need to make your decisions based on strategies that work for you, not in the hopes of supporting the banks. You need to find advisors who are NOT involved with your bank – of course, the banks’ advisors will tell you everything is fine.

It’s game on for the economic collapse.

It would be nice if I could say that I see a way for things to get better. But between “Bidenomics,”  banks tumbling like a row of dominos, the looming threat of CBDCs, and rampant inflation, I just cannot give a positive prediction.

You are the only person who can make decisions solely in the best interest of yourself and your family. You cannot expect the banks to be looking out for you or the government to watch your back.

These downgrades from Moody’s ARE the warning. A wise person will heed it.

Reprinted with permission from The Organic Prepper.