"The overnight news doesn t really dent our view on U.S. banks because we have been favoring quality and liquidity as a whole, our view on the broader sector still remains constructive," said Georgios Leontaris, chief investment officer for Switzerland and EMEA at HSBC Global Private Banking and Wealth
(Reuters) -Global bank shares skidded on Tuesday after Moody's downgraded 10 mid-sized U.S. banks and Italy approved a surprise 40% windfall tax on lenders, with the double-blow reigniting concerns about the challenges facing the industry. The sector has been looking to emerge from a crisis that took down three U.S. banks earlier this year and triggered a loss of confidence that engulfed Credit Suisse, which was bought out by rival UBS Group AG in a rescue deal. Investors worried that other countries would follow suit after Italy's action.
The rating agency said rising funding costs, a possible decline in deposit levels and weaker profitability pose risks to the banking sector, which went through a crisis earlier this year after the collapse of three lenders
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