The rating firm, among three of the world’s best, gave its outlook on the entire U.S. banking system following the bank runs and subsequent failure of SVB and Signature Bank, which caused a contagion across the financial markets.\u00a0<\/span><\/p>\n

In a report, Moody’s said:<\/span><\/p>\n

We have changed to negative from stable our outlook on the U.S. banking system to reflect the rapid deterioration in the operating environment following deposit runs at Silicon Valley Bank (SVB), Silvergate Bank, and Signature Bank (SNY) and the failures of SVB and SNY.<\/span><\/p><\/blockquote>\n
By moving in to change their preview on the state of the U.S. banking system, their change could impact credit ratings, which, in turn, would impact borrowing.<\/span><\/p>\n
Related Reading: Bitcoin Trader Sentiment Returns To Greed As BTC Jumps Past $25,000<\/a><\/div>\n
The Federal Reserve (Fed) has reportedly established a facility to ensure that institutions with liquidity problems would have access to cash, effectively opening swap lines in the U.S. Banking sector’s deposit base totaling $17.6 trillion.\u00a0<\/span><\/p>\n
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So the FED just opened swap lines on the entire US Banking deposit base of $17.6T. The FED balance sheet is $8.4T. One year swaps. Then what? Did the FED just become the FDIC? Who eats the losses? Isn't this QE infinity? Can the banks make any loan now consequence free\u2026<\/p>\n
— Lawrence Lepard, "fix the money, fix the world" (@LawrenceLepard) March 14, 2023<\/a><\/p><\/blockquote>\n