Here is more color on the Moody’s announced review of the credit ratings of the large banks which for a few minutes resulted in S&P selling. We’ve since bounced back because the view of Moody’s is solely related to the reduced expectations for the same amount of government support for the banks going forward rather than any sudden change in company operating fundamentals. “Today’s rating actions reflect Moody’s view that, in light of developments on the Dodd-Frank Act that have occurred to date, the unusual levels of uplift incorporated into the ratings of BAC, C and WFC may no longer be appropriate.” They will review whether the banks ratings should “include only pre-crisis levels of government support.”
