Credit Downgrade Threatens UMB Amid Silicon Valley Bank Downfall

Local implications amid a banking crisis and ensuing political blame game . . . Here are the basics of today's announcement that politicos are using for political leverage in both directions . . . Check-it:

Moody’s said it was instituting the review on UMB Bank because of its sensitivity related to uninsured deposits and the high amount of unrealized potential losses in its available-for-sale and held-to-maturity securities portfolios. UMB has $28.37 billion in uninsured deposits, or 71.3% of its $32.83 billion in total deposits. That's the third-highest ratio in the nation, according to a report Raymond James issued Sunday.

UMB also made a list of the nation's 20 banks with the highest percentage of accumulated other comprehensive income (AOCI) — basically a loss the bank would incur if forced to sell securities on its portfolio before they mature. UMB has $703 million in AOCI on its books.

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Moody's includes UMB Financial among six banks under review - Kansas City Business Journal

Moody's Investors Service placed UMB Financial Corp. under review for a potential downgrade of all its long-term credit ratings. Kansas City-based UMB Bank (Nasdaq: UMBF) joined five other banks Moody's said Monday would be placed under potential downgrade review. The others are First Republic Bank (NYSE: FRC), Intrust Financial, Zions Bancorporation (Nasdaq: Zion), Western Alliance (NYSE: WAL) and Comerica Inc.

Further reading . . .

U.S. Fed to consider tougher rules for midsize banks after SVB, Signature failures -WSJ

(Reuters) - The failures of Silicon Valley Bank and Signature Bank has led the U.S. Federal Reserve to reconsider a number of its own rules related to midsize banks, the Wall Street Journal reported on Tuesday.

The facts on Trump's 2018 loosening of regulations on banks like SVB | CNN Politics

After Silicon Valley Bank collapsed late last week following a run on the bank, Sen. Bernie Sanders of Vermont argued that the culprit was clear: an "absurd" 2018 law, signed by then-President Donald Trump, that rolled back regulations on banks of SVB's size.

Republicans Who Pushed for Financial Deregulation Blame Silicon Valley Bank Collapse on "Woke Agenda"

A list of Republicans blaming the bank failure on wokeness, contrasted with their own record.

SVB collapse was driven by 'the first Twitter fueled bank run' | CNN Business

The massive amount of customer withdrawals that led to the collapse of Silicon Valley Bank had all the hallmarks of an old-fashioned bank run, but with a new twist befitting the primary industry the bank served: much of it unfolded online.

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