Skip to main content

Moody's Takes Citigroup, BofA, Goldman Sachs, Morgan Stanley A Notch

  • Author:
  • Updated:

Plus a subsidiary of State Street, which apparently had gotten a pass for too long.

Moody’s Investors Service cut its ratings on four of the biggest U.S. banks after deciding the government would be less likely to help them repay creditors in a crisis. Morgan Stanley (MS), Goldman Sachs Group Inc. (GS), JPMorgan Chase & Co. (JPM) and Bank of New York Mellon Corp. had their senior holding company ratings lowered one level yesterday after Moody’s concluded a review of eight U.S. banks that began in August. Spokesmen for the four companies declined to comment...Bank of New York was cut to A1 from Aa3, and Goldman Sachs was lowered to Baa1 from A3, Moody’s said. JPMorgan was cut to A3 from A2, and Morgan Stanley was downgraded to Baa2 from Baa1. Subordinated debt ratings were also lowered for BNY Mellon, Goldman Sachs, JPMorgan, and Morgan Stanley. Citigroup’s Citibank NA subsidiary had its long-term deposits upgraded to A2 from A3 and short-term rating lifted to Prime-1. Bank of America’s long-term deposit rating was raised to A2 from A3 and its short-term rating was upgraded to Prime-1. State Street’s State Street Bank & Trust Co. subsidiary had its long-term deposit rating and subordinated debt downgraded.



Layoffs Watch '12: Goldman Sachs, Morgan Stanley, Citigroup, Barclays?

Supposedly summer cuts are under consideration at all firms. Morgan Stanley is planning to eliminate about 100 trading jobs internationally in the next several weeks — with an unknown number of the cuts coming from New York. At Goldman, executives are likely to let the hatchet fall if the slowdown in trading doesn’t reverse itself, bank officials have said...Goldman is already cutting selectively among its middle-management ranks but could cut even deeper, sources explained. Goldman CFO David Viniar has told people that the firm may have to undergo a “right-sizing” again if the markets’ rocky road doesn’t improve, according to sources. And it’s not just Goldman and Morgan. Industry sources said that a number of other firms, including Citigroup and Barclays Capital, may also look to trim staff. [NYP]

Bonus Watch '15: Goldman Sachs > Morgan Stanley > Bank of America

And backing up the rear for bonus across the pond: Société Générale.