J.P. Morgan, Goldman Sachs among ‘too-big-to-fail’ U.S. banks downgraded by S&P
Standard & Poor’s downgraded the credit ratings of J.P. Morgan Chase & Co., Goldman Sachs Group and six other major U.S. banks, saying it is no longer confident that the U.S. government would step in to support them in a future crisis.
S&P cut its ratings of the nonoperating holding companies (NOHC) of the eight U.S. banks determined to be “globally systemically important” by one notch. That has lowered ratings for Goldman Sachs GS, -2.66% Citigroup Inc. C, -1.16% Morgan Stanley MS, -1.26% and Bank of America Corp. BAC, +0.29% to BBB-plus, placing them just three notches above speculative, or “junk” status.
It cut J.P. Morgan to A-minus, and lowered State Street Corp. STT, -1.41% Bank of New York Mellon Corp. BK, -1.17% and Wells Fargo & Co. WFC, -1.60% to A.
The move comes as the Federal Reserve works to complete rules that will dictate the amount and type of capital banks must hold to absorb a major shock to the financial system. The Fed said in October that the country’s six biggest banks are facing a $120 billion capital shortfall under rules that will require them to hold large amounts of debt that can be converted into equity in a crisis.
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http://www.marketwatch.com/story/jp-morgan-goldman-sachs-among-too-big-to-fail-us-banks-downgraded-by-sp-2015-12-03
Interesting….
= new reply since forum marked as read
Don't give a shit if they all go under.
