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Liquidity Problems

All articles tagged with #liquidity problems

business1 year ago

Tupperware's Liquidity Woes Threaten Survival

Tupperware Brands warns of potential closure within a year due to liquidity issues, as it forecasts inadequate funds to support operations. The company has appointed a new CEO, hired an investment bank to explore strategic options, and reached a debt restructuring agreement with lenders. Tupperware attributes delays in financial filings to ongoing internal control weaknesses, financial challenges, and significant attrition. Sales have declined following a pandemic-related surge, and the company's shares are down 33% this year, closing at $1.34.

via New York Post |
#business#ceo-appointment#financial-restructuring
finance2 years ago

Yellen's Response to Bank Crisis: Backstopping Deposits and Resolute Commitment to Savings

Treasury Secretary Janet Yellen has said that the US government is prepared to provide further guarantees of deposits if the banking crisis worsens. Yellen said that the steps taken so far were necessary to protect the broader US banking system, and similar actions could be warranted if smaller institutions suffer deposit runs that pose the risk of contagion. The comments come in the wake of several bank failures, most notably Silicon Valley Bank and Signature Bank.

via CNBC|
#banking-crisis#deposit-guarantees#federal-reserve
finance2 years ago

First Republic Bank's Credit Rating Continues to Plummet Despite Infusion of Funds.

First Republic Bank's credit rating was slashed by S&P Global Ratings by three notches to B+ from BB+ due to liquidity problems, despite receiving a $30bn rescue package from 11 large US banks. The bank's stock dropped 20% in premarket trading, putting it on track to open below the record low close of $22.48. Moody's Investors Service also cut its credit rating on First Republic Bank by four notches to junk on Friday.

via MarketWatch|
#credit-rating#finance#first-republic-bank
finance2 years ago

First Republic Bank's Credit Rating Continues to Plummet with Second S&P Downgrade.

S&P Global has downgraded First Republic Bank's credit rating three notches to "B-plus" from "BB-plus," and warned that another downgrade is possible. The bank's recent $30 billion deposit infusion from 11 big banks may not solve its liquidity problems. Moody's Investors Service also downgraded First Republic to junk status on Friday. The deposit infusion should ease near-term liquidity pressures, but it "may not solve the substantial business, liquidity, funding, and profitability challenges that we believe the bank is now likely facing."

via CNBC|
#credit-rating#deposit-infusion#finance
finance2 years ago

Moody's warns of negative outlook for US and Canadian banking systems.

Moody's has downgraded its outlook on the entire US banking system from stable to negative, citing the "rapidly deteriorating operating environment" following deposit runs at Silicon Valley Bank, Silvergate Bank, and Signature Bank, and the failures of SVB and SNY. The move could impact credit ratings and borrowing costs for the sector. The Federal Reserve has established a facility to ensure that institutions hit with liquidity problems would have access to cash, and the Treasury Department has backstopped the program with $25 billion in funds. However, Moody's warns that banks with substantial unrealized securities losses and with non-retail and uninsured US depositors may still be at risk.

via CNBC|
#credit-ratings#deposit-runs#finance