{"id":84642,"date":"2023-11-14T23:47:03","date_gmt":"2023-11-15T04:47:03","guid":{"rendered":"https:\/\/ifintechworld.com\/investing\/bank-of-america-jpmorgan-chase-and-wells-fargo-shares-shrug-off-moodys-outlook-cut-to-negative-from-stable\/"},"modified":"2023-11-14T23:47:04","modified_gmt":"2023-11-15T04:47:04","slug":"bank-of-america-jpmorgan-chase-and-wells-fargo-shares-shrug-off-moodys-outlook-cut-to-negative-from-stable","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=84642","title":{"rendered":"Bank of America, JPMorgan Chase and Wells Fargo shares shrug off Moody\u2019s outlook cut to negative from stable"},"content":{"rendered":"
\n

Moody\u2019s 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.<\/p>\n

Meanwhile, bond prices of banks also climbed dramatically as yields fell, in another bullish move for the sector (see chart below).<\/p>\n

\n
<\/p>\n

<\/p>\n

<\/p>\n
<\/div>\n<\/figure><\/div>\n

Moody\u2019s negative outlook on bank debt reflects \u201cthe potentially weaker capacity of the government of the United States of America (Aaa negative) to support the U.S.\u2019s systemically important banks,\u201d analyst Peter E. Nerby said in a research note published late Monday.<\/p>\n

Moody\u2019s kept in place its \u201cStrong+\u201d score for the macro profile of the U.S. banking system.<\/p>\n

Moody\u2019s said the downgrade of Bank of America
\n BAC,
\n +5.49%<\/bg-quote>,<\/span>
\n JPMorgan Chase
\n JPM,
\n +1.82%<\/bg-quote>
\n and Wells Fargo
\n WFC,
\n +3.21%<\/bg-quote>
\n aligns with its rating cut on Friday of U.S. sovereign debt to negative from stable.<\/p>\n

Moody\u2019s maintained its stable rating on Citigroup Inc.\u2019s
\n C,
\n +3.89%<\/bg-quote>
\n debt. <\/p>\n

Bank of America\u2019s stock was up 5.5% after a favorable consumer-price-index reading lifted financial markets, while JPMorgan Chase rose 1.8%, Wells Fargo gained 2.5% and Citigroup rose 3.9%.<\/p>\n

The Financial Select Sector SPDR ETF
\n XLF
\n rose 1.9% and the SPDR S&P Regional Banking ETF
\n KRE
\n rallied by 7.4%.<\/p>\n

Bank of America\u2019s gain of 5.5% ranks as its largest percentage increase since the stock rose 6.06% on Oct. 17, 2022, according to Dow Jones Market Data.<\/p>\n

Also in the banking sector, Goldman Sachs Group Inc.
\n GS,
\n +3.61%<\/bg-quote>
\n rose 4.2% as the third-best performer among the 30 stocks in the Dow Jones Industrial Average
\n DJIA.<\/span>\n <\/p>\n

A potential upgrade of Bank of America debt would reflect the bank\u2019s ability to sustain a strong and stable performance with profit and capital levels consistently stronger than peer averages, as well as maintenance of its conservative risk profile, a \u201csuperior\u201d track record of controlling risk, consistency of management and its \u201cstrong\u201d liquidity and funding profile, Nerby said. <\/p>\n

Citigroup could see upward rating pressure if a corporate transformation now taking place under Chief Executive Jane Fraser is successful. <\/p>\n

Moody\u2019s said it will weigh factors at Citigroup such as the lifting of regulatory consent orders, a robust internal-control and risk-management environment that avoids risk-management failures that may affect its peers, maintenance of a restrained risk appetite and improved operating leverage.<\/p>\n

JPMorgan runs a \u201ccomplex\u201d capital-markets business that could pose \u201csubstantial\u201d creditor risks, Moody\u2019s said. <\/p>\n

Any potential upgrade in that bank\u2019s baseline credit assessment \u201cwould depend on sustaining strong and stable performance and capital levels\u201d above its peers, Moody\u2019s said. Any upgrade of the bank\u2019s baseline credit assessment would likely trigger an upgrade of JPMorgan Chase\u2019s debt ratings, Moody\u2019s said.<\/p>\n

For its part, Wells Fargo\u2019s debt remains highly rated, with upward price pressure not likely in the next 12 to 18 months, Moody\u2019s said.<\/p>\n

\u201c[Wells Fargo] could be downgraded if it loses traction in remediating its legacy regulatory issues,\u201d Moody\u2019s said. \u201cIt could also be downgraded if it suffers a material deterioration in its deposit franchise or has an outsized spike in nonperforming assets, or if there is a material expansion into riskier activities relative to its other banking businesses.\u201d<\/p>\n

Major litigation or other operational-risk changes or a failure in controls could also affect its ratings, Moody\u2019s said.\u00a0<\/p>\n

Along with higher bond prices for the big banks, the spread, or the difference between Treasury prices, has narrowed as investors bid up prices of the bank debt on Tuesday (see chart).<\/p>\n

<\/p>\n

<\/p>\n

<\/p>\n
\n \"\"\n <\/div>\n<\/figure><\/div>\n

Also read: <\/strong>U.S. banks and regional lenders slide across the board as S&P is latest to downgrade ratings<\/p>\n<\/p><\/div>\n<\/div>\n

Read the full article here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Moody\u2019s 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. Meanwhile, bond prices of banks also climbed dramatically as yields fell, in another bullish move for the sector […]<\/p>\n","protected":false},"author":1,"featured_media":84643,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"video","meta":{"footnotes":""},"categories":[239],"tags":[83],"class_list":["post-84642","post","type-post","status-publish","format-video","has-post-thumbnail","hentry","category-investing","tag-featured","post_format-post-format-video"],"yoast_head":"\nBank of America, JPMorgan Chase and Wells Fargo shares shrug off Moody\u2019s outlook cut to negative from stable | iFintechWorld<\/title>\n<meta name=\"description\" content=\"Moody\u2019s Investors Service cut its rating outlook to negative from stable on Bank of America Corp., JPMorgan Chase & Co. and Wells Fargo & Co., but\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/ifintechworld.com\/?p=84642\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Bank of America, JPMorgan Chase and Wells Fargo shares shrug off Moody\u2019s outlook cut to negative from stable | iFintechWorld\" \/>\n<meta property=\"og:description\" content=\"Moody\u2019s Investors Service cut its rating outlook to negative from stable on Bank of America Corp., JPMorgan Chase & Co. and Wells Fargo & Co., but\" \/>\n<meta property=\"og:url\" content=\"https:\/\/ifintechworld.com\/?p=84642\" \/>\n<meta property=\"og:site_name\" content=\"iFintechWorld\" \/>\n<meta property=\"article:published_time\" content=\"2023-11-15T04:47:03+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-11-15T04:47:04+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/11\/1700023623_social.jpeg\" \/>\n\t<meta property=\"og:image:width\" content=\"1280\" \/>\n\t<meta property=\"og:image:height\" content=\"640\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"News Room\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"News Room\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/ifintechworld.com\/?p=84642#article\",\"isPartOf\":{\"@id\":\"https:\/\/ifintechworld.com\/?p=84642\"},\"author\":{\"name\":\"News Room\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61\"},\"headline\":\"Bank of America, JPMorgan Chase and Wells Fargo shares shrug off Moody\u2019s outlook cut to negative from stable\",\"datePublished\":\"2023-11-15T04:47:03+00:00\",\"dateModified\":\"2023-11-15T04:47:04+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/ifintechworld.com\/?p=84642\"},\"wordCount\":623,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/ifintechworld.com\/#organization\"},\"keywords\":[\"Featured\"],\"articleSection\":[\"Investing\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/ifintechworld.com\/?p=84642#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/ifintechworld.com\/?p=84642\",\"url\":\"https:\/\/ifintechworld.com\/?p=84642\",\"name\":\"Bank of America, JPMorgan Chase and Wells Fargo shares shrug off Moody\u2019s outlook cut to negative from stable | iFintechWorld\",\"isPartOf\":{\"@id\":\"https:\/\/ifintechworld.com\/#website\"},\"datePublished\":\"2023-11-15T04:47:03+00:00\",\"dateModified\":\"2023-11-15T04:47:04+00:00\",\"description\":\"Moody\u2019s Investors Service cut its rating outlook to negative from stable on Bank of America Corp., JPMorgan Chase & Co. and Wells Fargo & Co., but\",\"breadcrumb\":{\"@id\":\"https:\/\/ifintechworld.com\/?p=84642#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/ifintechworld.com\/?p=84642\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/ifintechworld.com\/?p=84642#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/ifintechworld.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Bank of America, JPMorgan Chase and Wells Fargo shares shrug off Moody\u2019s outlook cut to negative from stable\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/ifintechworld.com\/#website\",\"url\":\"https:\/\/ifintechworld.com\/\",\"name\":\"Repay Down\",\"description\":\"Latest Personal Finance News, Tips and Updates\",\"publisher\":{\"@id\":\"https:\/\/ifintechworld.com\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/ifintechworld.com\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/ifintechworld.com\/#organization\",\"name\":\"Repay Down\",\"url\":\"https:\/\/ifintechworld.com\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png\",\"contentUrl\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png\",\"width\":558,\"height\":90,\"caption\":\"Repay Down\"},\"image\":{\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/\"}},{\"@type\":\"Person\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61\",\"name\":\"News Room\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png\",\"contentUrl\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png\",\"caption\":\"News Room\"},\"sameAs\":[\"https:\/\/ifintechworld.com\"],\"url\":\"https:\/\/ifintechworld.com\/?author=1\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Bank of America, JPMorgan Chase and Wells Fargo shares shrug off Moody\u2019s outlook cut to negative from stable | iFintechWorld","description":"Moody\u2019s Investors Service cut its rating outlook to negative from stable on Bank of America Corp., JPMorgan Chase & Co. and Wells Fargo & Co., but","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/ifintechworld.com\/?p=84642","og_locale":"en_US","og_type":"article","og_title":"Bank of America, JPMorgan Chase and Wells Fargo shares shrug off Moody\u2019s outlook cut to negative from stable | iFintechWorld","og_description":"Moody\u2019s Investors Service cut its rating outlook to negative from stable on Bank of America Corp., JPMorgan Chase & Co. and Wells Fargo & Co., but","og_url":"https:\/\/ifintechworld.com\/?p=84642","og_site_name":"iFintechWorld","article_published_time":"2023-11-15T04:47:03+00:00","article_modified_time":"2023-11-15T04:47:04+00:00","og_image":[{"width":1280,"height":640,"url":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/11\/1700023623_social.jpeg","type":"image\/jpeg"}],"author":"News Room","twitter_card":"summary_large_image","twitter_misc":{"Written by":"News Room","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/ifintechworld.com\/?p=84642#article","isPartOf":{"@id":"https:\/\/ifintechworld.com\/?p=84642"},"author":{"name":"News Room","@id":"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61"},"headline":"Bank of America, JPMorgan Chase and Wells Fargo shares shrug off Moody\u2019s outlook cut to negative from stable","datePublished":"2023-11-15T04:47:03+00:00","dateModified":"2023-11-15T04:47:04+00:00","mainEntityOfPage":{"@id":"https:\/\/ifintechworld.com\/?p=84642"},"wordCount":623,"commentCount":0,"publisher":{"@id":"https:\/\/ifintechworld.com\/#organization"},"keywords":["Featured"],"articleSection":["Investing"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/ifintechworld.com\/?p=84642#respond"]}]},{"@type":"WebPage","@id":"https:\/\/ifintechworld.com\/?p=84642","url":"https:\/\/ifintechworld.com\/?p=84642","name":"Bank of America, JPMorgan Chase and Wells Fargo shares shrug off Moody\u2019s outlook cut to negative from stable | iFintechWorld","isPartOf":{"@id":"https:\/\/ifintechworld.com\/#website"},"datePublished":"2023-11-15T04:47:03+00:00","dateModified":"2023-11-15T04:47:04+00:00","description":"Moody\u2019s Investors Service cut its rating outlook to negative from stable on Bank of America Corp., JPMorgan Chase & Co. and Wells Fargo & Co., but","breadcrumb":{"@id":"https:\/\/ifintechworld.com\/?p=84642#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/ifintechworld.com\/?p=84642"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/ifintechworld.com\/?p=84642#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/ifintechworld.com\/"},{"@type":"ListItem","position":2,"name":"Bank of America, JPMorgan Chase and Wells Fargo shares shrug off Moody\u2019s outlook cut to negative from stable"}]},{"@type":"WebSite","@id":"https:\/\/ifintechworld.com\/#website","url":"https:\/\/ifintechworld.com\/","name":"Repay Down","description":"Latest Personal Finance News, Tips and Updates","publisher":{"@id":"https:\/\/ifintechworld.com\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/ifintechworld.com\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/ifintechworld.com\/#organization","name":"Repay Down","url":"https:\/\/ifintechworld.com\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/","url":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png","contentUrl":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png","width":558,"height":90,"caption":"Repay Down"},"image":{"@id":"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/"}},{"@type":"Person","@id":"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61","name":"News Room","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/ifintechworld.com\/#\/schema\/person\/image\/","url":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png","contentUrl":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png","caption":"News Room"},"sameAs":["https:\/\/ifintechworld.com"],"url":"https:\/\/ifintechworld.com\/?author=1"}]}},"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts\/84642","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=84642"}],"version-history":[{"count":1,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts\/84642\/revisions"}],"predecessor-version":[{"id":84644,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts\/84642\/revisions\/84644"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/media\/84643"}],"wp:attachment":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=84642"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=84642"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=84642"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}