Citibank (NYSE:C) branches are now sinking this year as more physical locations begin to quickly close down.
“Next month a spate of new Citibank closures will take effect nationally, including three in the state of California,” reports Joel Eisenberg.
According to OCC.gov, the federal Office of the Comptroller of the Currency, the following three California-based Citibank branches are permanently closing in September:
- 1995 41st Ave, Capitola
- 10460 MT Gleason Ave, Tujunga
- 41969 Big Bear Blvd, Big Bear Lake
“It should be noted additional Citibank branches, both in and outside the state per current big bank trends, are expected to shutter from October to year’s end.”
This trend has occurred amongst big banks such as Wells Fargo, JPMorgan, and Bank of America.
Wells Fargo branches have now closed by an additional 37 across the U.S. as online banking competition sweeps new customers.
Daily Mail reports that Wells Fargo has filed to close an additional 37 branches across the US, further accelerating America’s transition to automated banking.
Many Bank of America branches are also closing between October through December, with plans to close other locations during the first quarter of 2024.
I will be publishing an article detailing which banks and locations will be closing each month moving forward so make sure to sign up to the newsletter, or opt in for push notifications so you don’t miss out.
Citibank stock is currently down more than -7% this year-to-date.
The bank recently slashed AMC Entertainment’s price target to $1.55, currently up +1% this year-to-date.
The last time a distressed bank targeted the recovering movie theatre chain, they ended up filing for bankruptcy.
“The firms has faced many ups and downs over the course of my career, and its clear we have challenges that we need to urgently address now,” said Chief Financial Officer Mark Mason.
Other Recent Banking News Today
Analysts are now making a painful decision to downgrade big banks, including industry leader and giant JPMorgan.
A Fitch Ratings analyst warned that the U.S. banking industry has inched closer to another source of turbulence — the risk of sweeping rating downgrades on dozens of U.S. banks that could even include the likes of JPMorgan Chase, reports CNBC.
“The ratings agency cut its assessment of the industry’s health in June, a move that analyst Chris Wolfe said went largely unnoticed because it didn’t trigger downgrades on banks.
But another one-notch downgrade of the industry’s score, to A+ from AA-, would force Fitch to reevaluate ratings on each of the more than 70 U.S. banks it covers, Wolfe told CNBC in an exclusive interview at the firm’s New York headquarters.”
“If we were to move it to A+, then that would recalibrate all our financial measures and would probably translate into negative rating actions,” Wolfe said.
Last week, Moody’s downgraded 10 small and midsized banks and warned that cuts could come for another 17 lenders, including larger institutions like Truist and U.S. Bank.
Earlier this month, Fitch downgraded the U.S. long-term credit rating because of political dysfunction and growing debt loads, a move that was derided by business leaders including JPMorgan CEO Jamie Dimon, reports CNBC.
“This time, Fitch is intent on signaling to the market that bank downgrades, while not a foregone conclusion, are a real risk”, said Wolfe.
The problem created by another downgrade to A+ is that the industry’s score would then be lower than some of its top-rated lenders.
“The country’s two largest banks by assets, JPMorgan and Bank of America, would likely be cut to A+ from AA- in this scenario, since banks can’t be rated higher than the environment in which they operate.
And if top institutions like JPMorgan are cut, then Fitch would be forced to at least consider downgrades on all their peers’ ratings, according to Wolfe.
That could potentially push some weaker lenders closer to non-investment-grade status.”
Also Read: JPMorgan Now Freezes Customer Account After Whopping Withdrawal
Market News Published Daily 📰
Join the newsletter ⬅️ to receive daily stock market news, business news and updates straight to your inbox; more than 10,000 readers have joined!
THANK YOU to all of our blog sponsors, this year we’ve been able to increase our email sends and signup slots as well as introduce push notifications.
Franknez.com is the media site that keeps retail investors informed.
You can also follow Frank Nez on Twitter, Instagram, Facebook, or LinkedIn for daily news and updates on your favorite stories.
Become a Sponsor for only $1/mo.
- Gain access to EXCLUSIVE FrankNez articles you won’t find here.
- Become part of a private and safe Discord community, just for retail investors.
- Get drawn at the end of the year for holiday giveaways.
