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Standard & Poor's cut its credit ratings on several large banks as part of its review of the way that it calculates the ratings.
The downgrades on Tuesday included five large banks: Bank of America (NYSE: BAC - News), Citigroup (NYSE:C - News), Goldman Sachs (NYSE: GS - News), Morgan Stanley (NYSE: MS - News) and Wells Fargo (NYSE: WFC - News).
S&P said it reviewed its ratings on 37 financial institutions.
The ratings agency will host two teleconferences to discuss its new ratings criteria for banks, which were published on Nov. 9, and the related ratings actions.
Also if we are supposed to be in a recovery then why have these major banks lose there credit rating something is amiss here and its rotten
"The key factor is that they are largely government owned, that means the risk to shareholders of these banks is quite low," Stephen Joske of the Economist Intelligence Unit in Beijing told the BBC. Mr Joske added that the Chinese government's was in a strong financial position to help its banks, should it need to step in. "If there were to be a run on domestic banks, the authorities have plenty of resources to bail them out," he said.