Market Overview

Kroll Bond Rating Agency Comments on the $1 Trillion Balancing Act


Kroll Bond Rating Agency's (KBRA) Subscription Rating Service (KSRS) released a communication regarding the article that was published in The Wall Street Journal on Tuesday, October 23, 2012 titled “The $1 Trillion Balancing Act.” The article states:

“A looming change in federal insurance on bank deposits is forcing corporate cash managers to reassess the safety of their banks and has them poring over their investment policies to determine how much money they can keep in any one institution.

The task is gaining urgency as the Federal Deposit Insurance Corp.'s unlimited guarantee on noninterest-bearing bank deposits nears its Dec. 31 expiration.

The FDIC introduced the blanket guarantee in 2008 to keep corporate deposits from fleeing banks during the financial crisis. It has provided a haven for corporate cash for the past four years. Banks are holding more than $1 trillion in assets under the program. After it expires, only the first $250,000 of each deposit will remain insured.”


KSRS provides independent and unbiased financial strength ratings for nearly 17,000 institutions, including all U.S. Banks and Thrifts, on a quarterly basis. Our record speaks for itself: Of the 46 banking institutions that have failed to date in 2012, all of them were rated “E” at January 1, 2012.

What differentiates the Kroll Subscription Rating Service from its competitors:

  • We set a new standard for financial strength ratings through a new and innovative ratings methodology.
  • Our quarterly financial strength ratings are derived using a strong analytical approach that produces highly accurate ratings and provides clients with an early warning of financial deterioration.
  • Our subscriber-based business model allows KSRS to deliver independent and unbiased financial strength ratings.
  • Prior to issuance, every rating is reviewed by two trained analysts. Our analysts are available for direct communication to provide transparency and insight to our methodology.
  • As a registered NRSRO, Kroll's internal controls and processes are subject to SEC oversight.
  • We offer unmatched breadth and depth of coverage.

To help manage risk in corporate cash deposits, KSRS is offering a Special Report identifying those deposit-taking institutions with our highest ratings. Contact Kroll to purchase a copy of this exclusive report and learn more about how our subscription products can help you monitor the strength and stability of your banking partners. Please call our Sales Team at (240) 394-1526 or visit our website at

About Kroll Bond Rating Agency

KBRA was established in 2010 by Jules Kroll to restore trust in credit ratings by creating new standards for assessing risk and by offering accurate, clear and transparent ratings. KBRA is registered with the U.S. Securities and Exchange Commission as a Nationally Recognized Statistical Rating Organization (NRSRO). In addition, KBRA is recognized by the National Association of Insurance Commissioners (NAIC) as a Credit Rating Provider (CRP).

Kroll Bond Rating Agency
Tawanda Seifert,240-394-4137
Managing Director
Steve McNear, 240-394-4143

View Comments and Join the Discussion!