Banks Respond To Moody’s Ratings Downgrades

The three major banks that received downgrades from Moody’s this week responded with assertions of their value. Bank of America’s and Wells Fargo’s long-term credit ratings were downgraded, while Citigroup was hit with a downgrade of its short-term credit rating. Moody’s says the downgrades stem from its belief the government is more likely now than during the financial crisis to allow a large bank to fail. The banks say that assessment is more a reflection on systemic support than their own liquidity profiles. » Read More