01:03 GMT12 August 2020
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    US banks have suffered from low revenues in the first quarter of 2016 as capital markets are facing turbulent times, Moody’s Investors Service said in a press release on Monday.

    WASHINGTON (Sputnik) — Moody's Senior Vice President Peter Nerby noted that the banks have seen particularly poor results in fixed income, currencies and commodities businesses. 

    ​"The large US investment banks had faced a turbulent quarter, posting their weakest Q1 results in last seven years and down 22% from a year ago," the release stated.

    These results "raised questions on the structural and cyclical challenges for their business model," he added.

    Moody's noted, however, that the decision by the US Federal Reserve to raise interest rates in December by 0.25 points had provided "slight relief" for American banks.

    On April 27, the Federal Reserve announced the interest rates would stay unchanged for some time.

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    Tags:
    economic downturn, banks, markets, Moody's, United States
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