Moody's Cuts Credit Ratings of 15 Major Banks

Moody's Investors Service lowered the credit ratings of 15 major banks Thursday, including Bank of America, JPMorgan Chase and Goldman Sachs, saying their long-term prospects for profitability and growth are shrinking.

The ratings agency said it was especially concerned about banks with significant financial markets businesses because those markets have become so volatile. Some of the largest European banks were also downgraded, including Barclays, Deutsche Bank and HSBC.

These banks were vulnerable to "outsized losses," Moody's global banking managing director Greg Bauer said in a statement. These behemoth banks are all major players in the global stock and bond markets, which have become extremely volatile. However, Bauer pointed out that some of the banks, like JPMorgan Chase and HSBC, have reliable buffers in more stable businesses which could act as "shock absorbers" during a crisis.

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