State Street Pans Moody’s ‘Terrible Overreaction’ on Banks
- Ron O’Hanley says regulators reassured markets with facility
- State Street CEO says Fed may keep raising rates this year
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The head of one of the world’s largest asset managers called Moody’s Investors Service’s outlook cut for the US banking system “a terrible overreaction” and said regulators had reassured the market following the collapse of three lenders.
“There were a lot of unique circumstances around the banks in question — both on the asset and liabilities side,” State Street Corp. Chief Executive Officer Ron O’Hanley said in an interview with Bloomberg TV on Wednesday. “I don’t think it’s helpful when rating agencies treat entire sectors the same way.”