They just announced a possible downgrade of Bank of America Corp., Citigroup Inc. and Wells Fargo & Co. as the U.S. government may limit support of the largest financial firms. The review will “focus on whether these ratings should be adjusted to remove this unusual uplift and include only pre-crisis levels of government support.”
Moody’s Senior Vice President Sean Jones says “‘The U.S. government’s intent under Dodd-Frank is very clear,” said “It does not want to bail out even large, systemically important banking groups.”
Moody’s assessments “... may temper the extent of any ratings downgrades that could result from its review of these firms’ unusual level of systemic support,”.
Still, Bank of America and New York-based Citigroup “have sizable residential mortgage exposures,” “Their credit costs could therefore spike if the U.S. economy were to contract again. Further, they continue to face litigation costs related to faulty foreclosure practices.”
As for Bank of New York Mellon, it had the outlook on its debt lowered to negative from stable.
Thursday, June 2, 2011
Moody's Threatens Downgrade of Bank of America, Citi and Wells fargo
Subscribe to:
Post Comments (Atom)
Blog Archive
-
▼
2011
(510)
-
▼
June
(36)
- New Warnings About The Canadian Housing Bubble "Ab...
- Canada Says Oil and Energy Shortages Could Cause Wars
- Fed to Buy $300B in Treasuries To Keep Interest Ra...
- Asian Countries Also Release Oil Reserves: Equival...
- Greek Police Launch Street Protests Against 25% Sa...
- Is It All About Saving The Banks? Or Saving Face?
- Infamous Agicultural Subsidies Are Spreading From ...
- How Dumb Can Voters Be? Argentina to Subsidize Dig...
- Oil Comes Crashing Down as IEA Releases Stragetic ...
- Confidence in Bernanke: 4%
- El Erian: Only Outcome for Greece Is Default; In T...
- Watch Out Groupon IPO: New 'Google Offers' Takes I...
- Roubini Says ECB/Greece Is Delusional Kicking of T...
- Papandreou: From Frying Pan to Fire
- The Amazing (Not) Solution for Greece: Solar Energy
- World Food Crisis: Brazil to Donate Food: 500K Ton...
- I.M.F. Sees Considerable and Substantial Risks in ...
- To Greece Or Not to Greece The Markets
- Moody's Upgrades Brazil Again
- Food Inflation Threatens Asia
- The Elephant In The Room is Greece; Moody Threaten...
- RIM Crashes: The New Nortel? Not Exactly
- Risk of Investing in Brazil Is Lower Than In The U...
- Soaring Food Inflation and Commodity Prices Cause ...
- S&P Downgrades Greece To Lowest Possible, Worst Th...
- Near Perfect IWM Straddles
- A New Revolutionary Cheaper TetraPak Container; Ba...
- Gold: Kitco Accused of Massive Tax Fraud
- EuroRating Agency Cuts U.S. Credit Rating
- Jobless Claims Rise Again
- U.S. Debt Now Exceeds 102% of Size of Economy, 3 Y...
- Chinese Official Warns Against Holding Too Much U....
- Unemployment Jumps to 9.1%, Not Unexpected; IWM Pu...
- Moody's Threatens Downgrade of Bank of America, Ci...
- Financials: How To Protect Your Capital - Without ...
- The ADP Numbers: Down Goes The Market
-
▼
June
(36)
No comments:
Post a Comment