Moody’s Downgrades Three Large US Banks
On Wednesday, Moody’s downgraded three US banks: Bank of America (BAC-N), Citigroup (C-N), and Wells Fargo (WFC-N). The credit ratings agency had signaled the move in June, but it backed up its actions yesterday with the belief that the government is less likely to bail out the large lenders. The stock market responded yesterday with declines of 7.5%, 5.2%, and 3.9% in BAC, C, and WFC, respectively.
Moody’s has stated that it could cut the banks’ ratings further if pending Dodd-Frank provisions are implemented that would stop too-big-to-fail bailouts. The top investors in these banks will need to reevaluate their positions before another potential downgrade.
This ownership report identifies the top shareholders of each lender.