Call it the Buffett downgrade folks. According to the NY Post A trio of big banks -- including two that legendary investor Warren Buffett has stamped his imprimatur on -- got a smackdown yesterday when Moody’s Investors Service cut their credit ratings.
The irony is that Moody’s also is one of the Oracle of Omaha’s biggest holdings.
But that didn’t stop it from downgrading the long-term rating of Buffett’s new problem child, Bank of America, slashing its long-term debt by two notches to Baa1 from A2. Wells Fargo’s long-term rating was dialed down from A2 to A1.
Although Moody’s move was widely expected, the action still delivered a gut-punch to an already battered financial sector that is bracing for an abysmal third quarter.
Shares of BofA, to which Buffett extended a $5 billion lifeline just last month, shed 7.5 percent to close at $6.38 -- a new 52-week low for the Charlotte, NC, bank. Meanwhile, Wells Fargo’s shares were off 3.9 percent, closing at $23.71….
Read more: http://www.nypost.com/p/news/business/buffett_downgrades_buffet_banks_fQvZ4HxtK74Kvh0JPIBJNL
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