WASHINGTON DC, March 15, 2023 ~ On Tuesday, financial watchdog organization Moody’s listed Comerica Bank as one of six US banks under scrutiny following the failures of Silicon Valley Bank and Signature Bank.
Comerica, which was headquartered in Detroit until its move to Dallas back in 2007, was added to the list in part due to almost 64% if its deposits falling above the FDIC insurance threshold. This news puts Comerica at risk of lost customer confidence, which could lead to sizeable withdraws and the need for subsequent asset liquidation.
March 14, 2023 ~ Anderson Economic Group Founder and CEO Patrick Anderson talks with Guy Gordon about the slowing increases in the Consumer Price Index, and the impact that the banking crisis might have on inflation moving forward.
(CONTINUED) Comerica released a media statement in reaction, stating in part, “Comerica looks forward to engaging with Moody’s during this review to better understand their concerns around uninsured deposits. We believe that any correlation between Comerica and the recently impacted banks in regard to deposits is an apples-to-oranges comparison.“
Moody’s credits the banking crisis in part due to deposits by customers of pandemic-related fiscal stimulus funds, which many banks put into long term fixed income securities that haven’t performed as anticipated due to rising interest rates.
The Biden Administration has worked swiftly to calm the crisis, with federal regulators taking over the failed banks while offering assurances that all deposits with those banks will be covered (even those that fall over the FDIC insurance threshold).
760 WJR TOP STORIES: