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Thursday, August 22, 2013

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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4 comments:

Anonymous said...

Looks as though the economy is not as solvent as the feds make it out to be.

I wonder if this information had anything to do with the NASDAQ being suspended today.

Anonymous said...

Here locally, the banks are just now starting to unload some of their abandoned houses & real estate. Some of the bank's foreclosures have been held on the books for as much as four years. I noticed that recently, they are starting to unload them.

Anonymous said...

Yes; something definitely in the works. nasdaq, the fema article earlier in blog, nsa, and much more. get ready for a real change with not much hope.

personal note: I pray for each one on this blog to find God soon. God knows where you are; you need to seek Him with your whole heart and He will see your desire. plug into Him before it's too late. when this thing blows for our nation; we must have a rock, an anchor, solid ground on which to stand. Jesus is the author and finisher of our faith. call on Him now; as He will hear your prayer.

Anonymous said...

God pays no attention to prophets of doom.If he so chooses,nothing will happen,but to be on the safe side, doing as 2:41 has suggested is an excellent idea.