JPMorgan Chase, BofA and Wells Fargo Hit With Negative Ratings Outlook from Moody’s

Moody’s has downgraded the ratings of JPMorgan Chase, Wells Fargo, and Bank of America from stable to negative, citing concerns about the U.S. government’s reduced capacity to support major banks. JPMorgan’s downgrade is partly due to risks in its complex capital markets business. Despite these downgrades, all three banks’ stocks have seen an uptick in November. This move aligns with the recent downgrade of the U.S. sovereign credit rating. Moody’s highlights significant risks for U.S. banks, including potential deposit flight, and forecasts a mild recession in early 2024, which could lead to tighter credit conditions and increased loan losses.