Newsletter May 2011: Good news and bad news for US banks

NEW YORK – Recovery in the US banking system since the 2007-09 credit crisis has been given a mixed report card by the rating agencies. In an early May assessment, Fitch Ratings says US banks are generally more liquid than is suggested by the new Basel III liquidity standards. But, Moody’s Investor Services concludes in a separate note that the outlook remains negative, reflecting continued challenges in America’s operating environment, asset quality vulnerabilities, and persistent risks that continue to weigh on banks' profitability and capitalisation.