downgrading the outlook for entire banking sector warning of rapid deterioration, my exclusive interview with a senior chairman and former ceo of goldman sachs is next. a russian fighter jet forces an american drone to crash into the black sea, fears growing of escalation as the battle in bakhmut intensifies further, a ukrainian soldier on the front lines is my guest the tonight. and ron desantis does a complete 180, florida governor says backing ukraine is not in america s best interest. it is the opposite of what he said when he was in congress. you will hear for yourself what the kfile found. let s go out front. good evening, i m erin burnett. out front, rapid deterioration those are the words used by the bond credit rating king moody, how they re describing the bank sector in the united states downgrading outlook from american banks to negative. warning of sharply rising deposit costs and go on to say, quote, pressures will persist and be exacerbated by more increases
The Subprime mortgage crisis, which sparked the 2008 crisis, refers to subprime borrowers of home loans. Some borrowers were labelled “Subprime” because of their risky creditworthiness | Latest News India
if this fear even if your bank doesn t fit those circumstances, this fear of other people withdraw. we better withdraw and she s wanting to say everyone. calm down. we re going to protect whatever we need to do to keep the system stable. so she s sending that message of confidence. but there is danger. in that? yes. so let s talk about that danger. is that really what the u. s government should do is say no matter what we ve got you to any limit. i think her projection of confidence that we will take care of the problems as they emerged as probably the right message. when you re facing a kind of fear driven possibility of runs on banks, but the danger of what they did with silicon, which was to ensure all the deposits for the entire level in the longer term. that presents a situation where banks say hey, we can take more risk right? which means we have to be looking at the liquidity standards. we have to look at the capital standards. we have to look at a better stress tests all the th
quote, pressures will persist and be exacerbated by more increases in interest rates. and here s the thing, moody views matter. they re rating impact the prices that banks pay to do business. the price of loans. and moody is sounding the alarm after bank failures began with silicon valley bank something that the chair of the banking committee said today requires more government action. we clearly need stronger capitol standards, we clearly need stronger liquidity standards, clearly need to do the strength and the stress test. and the stress is still rising. the fed is preparing to possibly raise interest rates again next week. and the aggressive hikes we ve seen the past months have come at a pace that we have not seen in american history in 40 years. and that increase in interest rates we re at the heart of silicon valley bank s problems, as economic analyst school system bianca company pointed