Moody's Reviews BofA, Citi, Wells Fargo For Possible Downgrades |
| Wall Street Journal - Jun 2, 2011 |
Moody's Investors Service placed the debt ratings of Bank of America Corp. (BAC), Citigroup Inc. (C) and Wells Fargo & Co. (WFC) on review for possible downgrade, noting that the ratings incorporate an "unusual amount of uplift" provided by federal government bailout money during the financial crisis.
The ratings firm said implementation of the Dodd-Frank financial-reform law suggests the government may not support even large financial institutions should they face another liquidity crisis.
Implicit support for future bailouts could erode under regulations being considered by Obama administration officials carrying out the Dodd-Frank Act, the ratings agency said.
"The U.S. government's intent under Dodd-Frank is very clear," said Moody's Senior Vice President Sean Jones. Now, he added, "the support assumptions built into these three banks' ratings are unusually high, which may no longer be appropriate in the evolving post-crisis environment."
Read Full Article from Wall Street Journal
- Posted: 2011-06-02 10:06:59
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