Investing|2/14/2012 @ 1:34PM
Moody's May Downgrade All Big Banks Due To Euro Mess
Moody’s looks set to follow up on its decision to downgrade the credit ratings of six European nations with a downgrade in the debt ratings of the country’s biggest banks. [1] [2]
JPMorgan Chase, Bank of America and Wells Fargo may have to contend with yet another downgrade as Moody’s follows in the footsteps of rival Standard & Poor’s to issue debt rating cuts as a direct result of a downgrade to the European nations’ ratings.
The other big names in the country’s banking industry – Citigroup, Goldman Sachs and Morgan Stanley – would also not escape the downgrade. Moody’s could justify its move to downgrade all these banks by as much as three notches based on their exposure to “Eurozone weakness and elevated economic and market uncertainties.” [2]
See our full analysis for Wells Fargo | Morgan Stanley | Bank of America
Moody’s hinted at the possibility of a downgrade in ratings for European nations late last year after S&P went ahead with sweeping ratings cuts across the Eurozone. [3] And that fact that S&P already downgraded ratings for these banks months ago only meant that Moody’s was soon going to follow suit (see S&P Bank Downgrades No Match for Bernake’s Bazooka).
http://www.forbes.co...artner=yahootix
 0
1 reply to this topic
1 user(s) are reading this topic0 members, 1 guests, 0 anonymous users |
|
