Big Bad Banks Downgraded

Yesterday Moody's downgraded 15 banks by one to three notches to reflect "the risk of losses they face from volatile capital markets activities".

Banks of course criticized the move as backward looking.

Morgan Stanley had its long-term debt rating lowered by two notches. The downgrade left Morgan Stanley more highly rated than Bank of America Corp and Citigroup Inc., but a step below Goldman Sachs Group.

Barclays PLC, BNP Paribas SA, Royal Bank of Canada, Citigroup, Goldman Sachs Group Inc, JPMorgan Chase & Co., Credit Agricole SA, and Deutsche Bank AG were also cut two nothces.

HSBC Holdings plc, Bank of America, Royal Bank of Scotland Group plc and Societe Generale SA were cut by one notch.