Top firms may have credit ratings cut

Ribbon Cutting

JPMorgan, Bank of America and Citigroup are among eight large U.S. banks that may have credit grades cut by Standard & Poor’s on the prospect that the U.S. government is less likely to provide aid in a crisis.

Bloomberg News reports that the companies -- along with Wells Fargo, Goldman Sachs, Morgan Stanley, Bank of New York Mellon and State Street -- had senior unsecured and nondeferrable subordinated debt ratings placed on negative credit watch, S&P said Monday in a statement. S&P said it expects to resolve the credit reviews by early December.

The Federal Reserve approved a rule last week that will require large U.S. banks to hold a stockpile of debt that can be converted into equity if they falter. The rule on total loss-absorbing capacity, or TLAC, is a key part of regulators’ efforts to avoid another financial crisis.

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JPMorgan, BofA, Citigroup Among Big U.S. Banks S&P May Cut

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