When a consumer’s credit score drops, it is hard to recover
financially. Wall Street firms could face the same fate. Goldman Sachs, Morgan Stanley, JPMorgan Chase,
Bank of America and Citigroup all
suffered credit ratings cuts on Thursday. The rating agency Moody’s Investors
Service said that, even though these banks had moved to strengthen their
operations, their core trading businesses contained structural weaknesses.
In other words, the downgrades reflect the new sober era for
Wall Street. Since Moody’s put the banks on warning in February, the firms have
had time to brace themselves and the immediate impact of the cuts is not likely
to be drastic. But banking industry analysts say they think Moody’s actions
will cause lasting pain...
Find out more at http://www.cnbc.com/id/47931407
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