Fitch may downgrade BofA, Morgan Stanley, Goldman

[OhioChick]

Source: Economic Times of India

14 Oct, 2011, 07.10AM IST, AP

NEW YORK: Fitch Ratings is reviewing its ratings for Bank of America Corp., Morgan Stanley, Goldman Sachs Group Inc. and five European banks, and may downgrade all of them.

The agency placed a host of ratings for the largest U.S. bank, the two largest U.S. investment banks and several European counterparts on ``ratings watch negative'' on Thursday and said it expects to act soon.

Fitch said it mainly is concerned about how increased uncertainty about market and economic conditions will affect Bank of America, the biggest U.S. bank, measured by deposits. Fitch said the bank remains highly exposed to the volatile U.S. housing market, which is an issue as long as real estate values remain under pressure and the economy appears to be weakening.

It also is analyzing the Charlotte, North Carolina-based bank's risks related to a series of recent lawsuits over the sale of securities backed by soured mortgages, and it's looking at Bank of America's plans for shoring up its capital. Other banks are involved in litigation, but Bank of America was sued for $10 billion by American International Group Inc. in August. Another lawsuit filed last month concerns a total of $57.5 billion in mortgage-backed securities the bank sold to Fannie Mae and Freddie Mac.
After Bank of America reached a deal in another similar lawsuit, Fitch said it kept the bank's ratings steady in a June review. But the new lawsuits _ plus ongoing litigation involving many states' attorneys general and other potential legal issues _ have raised new concerns.


Read more: http://economictimes.indiatimes.com/news/international-business/fitch-may-downgrade-bofa-morgan-stanley-goldman/articleshow/10348947.cms

[Demeter]

1. I'm not familiar with this particular game

not even sure what it's called.

Beggar thy customer? Blackmail without the mail?

It will take some contemplation and imagination.....

[SparkyOR]

2. I guess we're supposed to drum up some sympathy?

for the top 6 "too big to fail" banks? What will it take to get Obama to ditch Timothy Geitner? Every loss sustained by these banksters will be visited on all of us, through financial retaliation. OWS!!!

[davidwparker]

6. +1

[kimsarah]

3. Way to go Fitch

about 6 years too late

[roguevalley]

4. dig a hole and bury them

[dd2003]

5. dbd!

bullish I am sure