Late Monday, big three credit rating agency Moody’s announced it may slash the credit ratings of six large U.S. banks, causing stocks to sink in turn.
Banks such as State Street, Bank of New York Mellon and Northern Trust are all reportedly on Moody’s chopping block and currently under review for a possible downgrade with the credit agency.
“Higher interest rates continue to reduce the value of U.S. banks’ fixed rate securities and loans and interest rate risk is not captured well in U.S. bank regulation and thus can create liquidity risks,” said Moody’s late Monday.
The Dow, S&P 500 and the Nasdaq all fell parts of a percentage as a result of the news, while the stocks of U.S. banks like JPMorgan Chase and Bank of America were also negatively impacted by Moody’s potential ratings downgrades
