Standard & Poor’s cut its nonoperating holding company (NOHC) ratings on eight U.S. “global systemically important banks” by one notch, citing uncertainty about the U.S. government’s willingness to provide support to the banking system if it came under stress.
The ratings apply to the holding companies of Bank of America Corp (BAC.N), Citigroup Inc (C.N), Morgan Stanley (MS.N), Wells Fargo & Co (WFC.N), Bank of New York Mellon Corp (BK.N), State Street Corp (STT.N), JPMorgan Chase & Co (JPM.N) and Goldman Sachs Group Inc (GS.N).
The credit ratings on the banks’ operating units are not affected by the downgrade.
The Federal Reserve said last week that big U.S. banks would have an extra year to calculate a capital requirement known as the supplementary leverage ratio for stress tests.
h/t WRSA
