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

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.” Moody’s said the long-term outlook on the bank’s senior ratings remains negative. Bank of America shares were down 3 percent at $6.69 after the announcement. Citigroup shares declined 0.1 percent at $26.89 and Wells Fargo shares were up 1 percent at $24.92. (Reporting by Joe Rauch; editing by Gunna Dickson and Andre Grenon) Copyright 2011 Thomson Reuters. Click for Restrictions.

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

Posted by on September 21, 2011. Filed under News. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.