The senior debt of U.S. Bancorp (USB) is downgraded to A1 from Aa3 by Moody's, "reflecting the...

|About: U.S. Bancorp (USB)|By:, SA News Editor

The senior debt of U.S. Bancorp (USB) is downgraded to A1 from Aa3 by Moody's, "reflecting the inescapable challenges that even a well-managed and diverse banking franchise currently faces." Among those challenges are the Fed's ZIRP, Twist, and QE∞ which have crushed net interest margins. Also noted is the bank's increasing reliance on mortgage banking income, i.e., HARP.