Federal Reserve Unveils Oversight On Crypto, Tech In Banking
Portfolio Pulse from Michael Cohen
The Federal Reserve Board has unveiled details of its program to supervise novel activities in the banks it oversees, including technology-driven collaborations with non-banking entities, and activities involving crypto-assets and blockchain technology. The program aims to cultivate the advantages of financial innovation while managing risks to ensure the stability and integrity of the banking system. The board also provided guidelines for state banks supervised by the Federal Reserve to adhere to before engaging in specific dollar token or stablecoin activities. In related news, Moody's downgraded the ratings of 10 U.S. small and mid-sized banks, including M&T Bank Corp. (NYSE:MTB) and Webster Financial Corporation (NYSE:WBS), causing a drop in shares of U.S. banks.
August 08, 2023 | 9:32 pm
News sentiment analysis
Sort by:
Descending
NEGATIVE IMPACT
The iShares U.S. Financials ETF (IYF) may be negatively impacted in the short term due to the downgrade of ratings of U.S. banks by Moody's.
The iShares U.S. Financials ETF (IYF) includes a number of U.S. banks. The downgrade of ratings of these banks by Moody's could negatively impact the performance of the fund and lead to a drop in its price.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 70
NEGATIVE IMPACT
M&T Bank Corp's stock price may be negatively impacted in the short term due to Moody's downgrade of its rating.
Moody's downgrade of M&T Bank Corp's rating indicates potential weaknesses in the bank's regulatory capital and increasing risks associated with commercial real estate lending. This could lead to a loss of investor confidence and a drop in the bank's stock price.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
Webster Financial Corporation's stock price may be negatively impacted in the short term due to Moody's downgrade of its rating.
Moody's downgrade of Webster Financial Corporation's rating indicates potential weaknesses in the bank's regulatory capital and increasing risks associated with commercial real estate lending. This could lead to a loss of investor confidence and a drop in the bank's stock price.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
The Financial Select Sector SPDR Fund (XLF) may be negatively impacted in the short term due to the downgrade of ratings of U.S. banks by Moody's.
The Financial Select Sector SPDR Fund (XLF) includes a number of U.S. banks. The downgrade of ratings of these banks by Moody's could negatively impact the performance of the fund and lead to a drop in its price.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 70