Moody’s Downgrades BofA, Wells Fargo, Citigroup On Fears U.S. Wouldn’t Aid Banks

(Reuters) Moody’s Corp on Wednesday cut the debt ratings of Bank of America Corp, Wells Fargo & Co and Citigroup Inc, three of the largest U.S. banks, on worries the government would be less likely to support a large lender if it got into trouble.

The government is “more likely now than during the financial crisis to allow a large bank to fail should it become financially troubled, as the risks of contagion become less acute,” the ratings agency said.

The action concludes a three month review that began in June when the ratings agency said the banks faced a potential downgrade.

Moody’s downgraded Bank of America’s long-term senior debt rating to “Baa1” from “A2” and its short-term debt rating to “Prime 2” from “Prime 1.”

Read more: http://www.huffingtonpost.com/2011/09/21/moodys-downgrades-bofas-credit-rating_n_974077.html

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: