S&P Downgrades Major Investment Banks
Morgan Stanley, Merrill Lynch and Lehman Brothers had their credit ratings lowered by Standard & Poor's
on expectations the securities firms will be forced again to write down the value of their assets.
S&P also revised its outlooks on Bank of America and JPMorgan Chase to negative.
Citigroup was taken off review for a downgrade and given a negative outlook, while Wachovia was placed on review for a downgrade.
S&P said: "The outlook on all three New York-based firms remains negative.
The outlooks on the large financial institutions sector in the U.S. are now predominantly negative.
The negative actions reflect prospects of continued weakness in the investment banking business and
the potential for more write-offs, though not of the magnitude of those of the past few quarters."
on expectations the securities firms will be forced again to write down the value of their assets.
S&P also revised its outlooks on Bank of America and JPMorgan Chase to negative.
Citigroup was taken off review for a downgrade and given a negative outlook, while Wachovia was placed on review for a downgrade.
S&P said: "The outlook on all three New York-based firms remains negative.
The outlooks on the large financial institutions sector in the U.S. are now predominantly negative.
The negative actions reflect prospects of continued weakness in the investment banking business and
the potential for more write-offs, though not of the magnitude of those of the past few quarters."
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