Moody’s Mulls Downgrade Of Big Banks As U.S. Support Wanes AND MORE

Moody’s Investors Service may cut debt ratings on at least four of the six largest U.S. banks as it examines whether the government would be less likely to ensure creditors are repaid in a crisis.

Goldman Sachs Group Inc. (GS), JPMorgan Chase & Co. (JPM), Morgan Stanley (MS) andWells Fargo & Co. (WFC) may be downgraded, Moody’s said today in a statement. Bank of America Corp. (BAC) and Citigroup Inc. (C) are under review, with the direction of any rating change uncertain, Moody’s said. Bank of New York Mellon Corp. and State Street Corp. were already under review, Moody’s said.

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Moody's Weighing Another Round Of Big Bank Downgrades
Ratings agency Moody's MCO +3.18%Investors Service said Thursday it has placed senior and subordinated debt ratings on some of America’s biggest banks under review for potential action.

The firm is considering reducing its assumptions of government support, which have put a floor under its bank ratings dating back to the extraordinary assistance provided to the banking sector during and after the 2008 financial crisis.

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Moody's eyes downgrade of biggest US banks
NEW YORK (AFP) - Ratings agency Moody's said Thursday it was mulling a downgrade for four major US banks due to an expected reduction in government support under financial reforms.

JPMorgan Chase, the largest US bank by assets; Wells Fargo and investment banks Goldman Sachs and Morgan Stanley were placed under review for a lower credit rating.

Two other banks -- Bank of America, the second-largest US bank, and Citigroup -- also were under review but the direction of their rating was uncertain, Moody's said in a statement.

Moody's said that the six largest US banks were under review as it "considers reducing its government (or systemic) support assumptions to reflect the impact of US bank resolution policies."

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