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RATINGS AGENCY Standard and Poor’s has downgraded the credit ratings of 37 financial institutions, including some of the biggest banks in the US.
The US banks downgraded yesterday include Citigroup Inc, Wells Fargo, JPMorgan Chase, Goldman Sachs and Morgan Stanley.
S&P did not release details of its evaluation for each of the institutions, but is expected to release further details of the ratings changes today.
The agency also downgraded Bank of America’s commercial mortgage trust, citing a review of the structure of the trust’s dealings and the level of liquidity available to it.
Speculation has been growing over Bank of America’s ability to withstand further turbulence in the US or European economies, and it said recently that ratings downgrades could effect its access to the markets and “could likely have a material adverse effect on our liquidity”.
The banks shared fell to their lowest levels since March 2009 ahead of yesterday’s ratings announcement amid investor fears over the stability of the euro.
S&P said the changes to the 37 institutions’ ratings reflect its own updated criteria for banks which cover changes within the industry and the role of governments and central banks in finance worldwide.
- Additional reporting by the AP
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Can we not do away with these Ratings Agencies??
Agree with you Jason. They always seem to pounce with a downgrade just as it seems countries are reaching a solution to some of the financial problems. As European leaders seem to finally getting their heads in gear to sort out the euro S&P through this in. Who are they? Who owns or controls them. Is there a Mr or Ms Standard. (lord knows we are all Mr &Ms Poors at the moment!)
This downgrade has been due for a LONG time.
The latest chapter in Ireland’s history, we’ve had the vikings, Normans, English, catholic church and now it’s time for the banks.
They’re making money by playing the markets like this. They should be disbanded
Yeah but who rates the rating agencies eh??
The coastguard?
As far as I’m aware, the ratings agencies are funded by the stock exchanges. The bigger problem is these agencies were asleep at the wheel in the run up to the financial crisis in 2008 and actively contributed to these problems. They’re overcompensating now.
Standard and poors , Moody’s , the markets , Moore McDowell , the troika … Go and find a hole and throw yourselves into it and let us go back to our half normal life before youse gobshites came along and rated us.
The agencies are owned by public companies and earn their revenues from bond issuers asking to be rated. If we weren’t rated, many pension fund rules would prohibit them from investing in our debt.
The rating agencies were absolutely shocking in the run up to the sub prime crisis, but as for this recent action, they’re just saying what everyone else knows – that banks aren’t as safe as they used to be and government support is no longer guaranteed. They’re just doing their jobs.
have your say