Indicative of the falling global economy, one of the world's preeminent credit rating agencies slashed the credit ratings of such U.S. based banking giants as Bank of America, Citibank, Goldman Sachs, J.P. Morgan Chase and Morgan Stanley, 5 of the 6 largest U.S. banks. Only Wells Fargo was spared. But that's not all.
They also cut the ratings of such bank behemoths as Credit Suisse, Deutsche Bank, Royal Bank of Canada, Royal Bank of Scotland, UBS and others. All told, 15 banking giants had their credit ratings cut, because of exposure to the collapsing economies in Europe, as the impact of the Euro Zone problems spread.
With lower credit ratings, those banks must pay more to raise money from investors, costs that will likely be passed on to their customers including you and me. But it also tells us the global economic situation is worsening and that we should be protective of our jobs, and avoid overextending ourselves in our spending. We must also do what we can to support others in need, as we are all brethren and will be going through hard times together.
Dick
To learn more about Moody's credit rating cuts, please see http://dealbook.nytimes.com/2012/06/21/moodys-cuts-credit-ratings-of-15-big-banks/?nl=todaysheadlines&emc=edit_th_20120622
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