Moody’s Downgrades Banks

    A Bank of America Corp. sign is illuminated outside a branch in Charlotte, North Carolina, U.S., on Friday, April 15, 2011. Bank of America Corp., the largest U.S. lender by assets, reported its first profit in three quarters and settled more claims tied to faulty mortgages as an improving economy helped borrowers keep up with debts. Photographer: Chris Keane/Bloomberg via Getty Images

    Chris Keane / Bloomberg-Getty Images

    Next up for a credit downgrade: Bank of America and Wells Fargo. Moody’s knocked Bank of America’s credit rating down two notches and Wells Fargo’s down one. The ratings agency cited the fact that the government is less willing to bail out banks as a reason for the downgrade. The government is “more likely now than during the financial crisis to allow a large bank to fail should it become financially troubled, as the risks of contagion become less acute,” Moody’s said in a statement. Bank of America says it disagrees with Moody’s decision.

    Read it at The Wall Street Journal