S&P Drops an Early Christmas Present on 37 US Banks
- Joshua M Brown
- November 29th, 2011
Here's what you have to look forward to tomorrow, ladies and gentlemen...
From the AP:
NEW YORK (AP) — Standard & Poor's Ratings Services has lowered its credit ratings for many of the world's largest financial institutions, including the biggest banks in the U.S.
Bank of America Corp. and its main subsidiaries are among the institutions whose ratings fell at least one notch Tuesday, along with Citigroup Inc., Goldman Sachs Group Inc., JPMorgan Chase & Co., Morgan Stanley and Wells Fargo & Co.
S&P said the changes in 37 financial companies' ratings reflect the firm's new criteria for banks, and they incorporate shifts in the industry and the role of governments and central banks worldwide. The agency did not release its evaluation of each company but said it plans to discuss the changes during a conference call early Wednesday.
S&P is now incorporating more macroeconomic data in their ratings and outlook, it appears. Good idea - but not so good if you're Bank of America, already teetering on the brink of, I don't know, the next bailout or something.
See you in the morning.
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The Reformed Broker is a blog about financial markets and the economy. Joshua Brown is a New York City-based investment advisor for high net worth individuals, charitable foundations, retirement plans and corporations... More.