{"id":595589,"date":"2023-08-09T00:00:00","date_gmt":"2023-08-09T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2023\/08\/09\/bad-times-for-us-banks\/"},"modified":"2023-08-09T00:00:00","modified_gmt":"2023-08-09T00:00:00","slug":"bad-times-for-us-banks","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2023\/08\/09\/bad-times-for-us-banks\/","title":{"rendered":"Bad times for US banks"},"content":{"rendered":"

Moody\u2019s is on a downgrade spree: <\/strong>The international rating agency downgraded the ratings of 10 smaller US banks and put six larger lenders on review for a potential downgrade as it warned of weak profitability and funding risks in the US banking sector, Reuters<\/a> reports citing a Moody\u2019s note. \u201cMany banks' second-quarter results showed growing profitability pressures that will reduce their ability to generate internal capital,\u201d Moody\u2019s said. The move comes months after the US banking sector was hit by the sudden collapse of Silicon Valley Bank and several other small and mid-size lenders as depositors withdrew their money. <\/p>\n

The market was quick to respond: <\/strong> The downgrade led to a broad selloff in US equities yesterday, with the S&P 500 Banks index falling 1.1%, says Reuters<\/a>. <\/p>\n

S&P Global moves away from numbered ESG credit scores: <\/strong>The ratings agency will no longer use a 1-5 scoring system to evaluate corporate borrowers' exposure to environmental, social, and governance (ESG) risks, the Financial Times<\/a> reports, opting instead for a written evaluation only. Moody\u2019s will continue to use its numbered evaluation. The news comes amid a wave of skepticism among investors over ESG reporting amid reliability concerns, as well as attacks from the US political right that have branded ESG as a form of \u2018woke capitalism.\u2019 <\/p>\n

PE firms are sweetening the pot to attract business: <\/strong>Blue-chip private equity outfits are offering incentives including lower management fees to lure wealthy investors amid the toughest year for fundraising since the global financial crisis, the Financial Times<\/a> reports. PE firms globally raised a total of USD 517 bn in 1H 2023, a 35% decrease from the same period last year. Tighter monetary conditions and a drought of dealmaking and IPO activity means investors now have less to allocate to PE, leading one top exec to warn of the \u201cend of an era\u201d for private equity. <\/p>\n

ALSO WORTH NOTING- <\/strong><\/p>\n