These Banks Are About to Face (Another) Profit Headwind: What It Means for Investors
The hits just keep coming for midsize banks. After interest rates rocketed from essentially zero to 15-year highs in about a year, 2023 has brought three of the largest bank failures in U.S. history. Just when it seemed that things had calmed down, Moody's and S Global issued credit downgrades for multiple banks, announced reviews of others, and issued negative outlooks for even more.
And today, the three main federal regulators jointly proposed a new requirement that U.S. banks below the level of global systemically important banks (G-SIBs) with more than $100 billion in assets would be required to raise and hold more long-term debt as a source of capital to protect against deposit losses.
That group includes Truist Financial, PNC Financial, and Capital One Financial Services Group, all with over $467 billion in assets. Also on the list are large regional banks including Fifth Third Bancorp, Citizens Financial, and M Bank, which have over $200 billion in assets, and Regions Financial, with about $155 billion in assets.
Source Fool.com
