Ratings of three banks cut by Moody's
NEW YORK | Moody's Investors Service has lowered some of the debt ratings for Bank of America Corp., Wells Fargo & Co. and Citigroup Inc., saying it is now less likely that the U.S. government would step in and prevent the lenders from failing in a crisis.
The ratings firm said Wednesday that it believes the government is likely to provide some level of support for financial institutions but is also more likely now than during the 2008 financial crisis to allow a large bank to fail should it become financially troubled.
The firm confirmed Citigroup’s long-term rating but downgraded its short-term rating.
Group: Financial risks rising in U.S. and Europe
The International Monetary Fund says the global financial system is more vulnerable than at any point since the 2008 financial crisis.
Risks to banks and financial markets have increased in recent months, the global lending organization said in a report Wednesday. The European debt crisis is affecting its banking system to the point where banks may pull back on lending to conserve cash, which threatens to worsen growth in the region.
Meanwhile, there are growing doubts that the U.S. lawmakers can forge the political consensus needed to reduce its growing budget deficits. Rising deficits were a key reason Standard & Poor's downgraded long-term U.S. debt last month.
European leaders should quickly implement an agreement reached in July that provides the region's bailout fund with more flexibility, while the U.S. and Japan must phase in steps to reduce their deficits, the IMF said.
Forecasts point to modest holiday growthView Entire Story
© Copyright 2013 The Washington Times, LLC. Click here for reprint permission.
By Elaine Donnelly
Extending sexual misconduct to combat units
Independent voices from the TWT Communities
Entertainment News and Reviews from Washington, D.C. and beyond.
Columns from Voices around the World talking about the events, people, politics and social issues that concern us wherever, and whoever, we are.
Video reviews of today's hottest trends in Minecraft (servers and mods) along with a look at the latest video games with your host MCairsoft14 (alias Jerad Zad).
Covering the world of soccer, including the World Cup, Major League Soccer, D.C. United and the English Premier League and other interesting sporting events.
Benghazi: The anatomy of a scandal
Vietnam Memorial adds four names
Cinco de Mayo on the Mall
NRA kicks off annual convention