Moody's Wakes Up, Whacks 23 Banks

Moody's (MCO) said yesterday that "higher than previously expected credit losses" (what did Moody's previously expect, zero credit losses? - but I digress) has led the rating agency to put 23 banks on watch for lower ratings.

Banks looking at a one-notch downgrades include:

Astoria Financial (AF), BancWest, BB&T (BBT), BMW Bank of North America, Capital One Financial Corp. (COF), Citizens Republic Bancorp, Inc. (CRBC), First Citizens BancShares, Inc. (CTZN), Fulton Financial Corporation (FULT), KeyCorp (KEY), M&T Bank Corporation (MTB), Pacific Capital Bancorp (PCBC), PNC Financial Services Group, Inc. (PNC), South Financial Group, Inc. (TSFG), Susquehanna Bancshares, Inc. (SUSQ), Trustmark Corporation (TRMK), U.S. Bancorp (USB), United Bankshares, Inc (UBCP).

Banks that will likely see a two notch downgrade include:

Fifth Third Bancorp (FIFTB), Huntington Bancshares Incorporated (HBAN), SunTrust Banks, Inc. (STI), Synovus Financial Corp. (SNV), UCBH Holdings, Inc. (UCBH), UnionBanCal Corporation (UB), Western Alliance Bancorporation (WAL), Wilmington Trust Corporation (WL).

And lastly, banks that will suffer a three notch downgrade include:

BBVAPR Holding Corporation, Colonial BancGroup, Inc. (CNB), Compass Bancshares, Inc. (CBSS), Zions Bancorporation (ZION).

I'll say one thing: US Bancorp's Richard Davis is going to blow a f***ing gasket.

Comments

[helplessobs...:]

I own BBT and was suprised to see them increase their dividend recently. At $1.88 it is very rich, near 13 to 14 % at the stock's low. Their troubled loans in Wash DC, Atlanta and Florida are well documented and CEO Kelly King is keeping a firm grip on them. Other businesses, retail banking and insurance are very profitable. Kelly is most concerned with is consumer loans with unemployment rising. BBT will survive and since I've been keeping score it has risen from the 14th largest bank to 11th. It and BAC will dominate banking the the SE USA.

Mar 13 10:51 AM

[JAT:]

Why do you say that "US Bancorp's Richard Davis is going to blow a f***ing gasket"? Is it because he thinks he has a basis/reason for disputing Moody's analysis? Pls comment...

Mar 13 01:37 PM

[William Cowie:]

What woke the people at Moody's?

Mar 14 02:46 AM

[PeteK:]

Not too Bad, only 23 banks !!
Next time maybe only 2 or 3.
Thanks for the info. Very good job.

Mar 14 04:17 AM

[User 362676:]

Regions Bank is noticably absent. Are they on the upswing?
Tell us more about Fifth Third Bank.

Mar 14 09:59 AM

[JJ Hornblass:]

Because Davis has been the bank CEO most outraged by the regulators' actions. Now with Moody's jumping on the bandwagon, I have no doubt that he threw at least one chair.


On Mar 13 01:37 PM JAT wrote:

> Why do you say that "US Bancorp's Richard Davis is going to blow
> a f***ing gasket"? Is it because he thinks he has a basis/reason
> for disputing Moody's analysis? Pls comment...

Mar 17 11:09 AM

[Burton A. J...:]

How many bankers, including Mr. Davis, would be blowing gaskets or taking money from TARP had they simply stuck to the business of doing prudent banking?

Jun 18 03:19 PM