Government Chooses Big Banks Over the Little Guy … Year After Year
by George, Washington’s Blog:
In a March 27 report, Moody’s displays a bar chart of its credit ratings for the banks in blue. In green bars, it shows Goldman Sachs and Wells Fargo would be rated two grades lower if the taxpayer backstop didn’t exist. Moody’s boosted Morgan Stanley’s score by two grades for the same reason, even though it had downgraded that bank in June 2012.
The scores for Bank of America, Citigroup and JPMorgan (JPM) are three grades lower in the green bars.
Debt sold by the holding companies of Bank of America and Citigroup (C), the second- and third-biggest U.S. banks by assets, would fall to junk status without the implicit government guarantee, Moody’s Senior Vice President David Fanger says.
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