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JPMorgan Chase, Bank of America, Citibank and Wells Fargo’s Total Assets Balloon by $681,710,000,000 in Just Three Months: S&P Global

1. US banks, including JPM, saw assets grow by $681.71 billion. 2. JPMorgan Chase reported an asset increase of $355.04 billion, 8.9% growth. 3. Moody's downgraded JPM's deposit ratings to Aa2, citing weakened government support. 4. The U.S. credit rating was downgraded from AAA to Aa1 recently. 5. The asset growth contrasts sharply with a prior 2.9% contraction.

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FAQ

Why Bearish?

While JPM experienced strong asset growth, the Moody's downgrade raises concerns about financial stability. In 2008, similar downgrades correlated with decreased investor confidence and falling stock prices.

How important is it?

The asset growth is substantial but overshadowed by the downgrade implications. Investors typically react quickly to changes in credit ratings, affecting JPM's market performance.

Why Short Term?

The immediate impact of the downgrade will likely be felt soon in market reactions. Historical trends show that downgrades often lead to reduced stock valuations shortly afterward.

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