Bank of America Death Watch: Moody's Downgrades B of A Credit, Signals Bailouts Less Likely

The most interesting thing about the credit rating agency's decision to downgrade Bank of America, Wells Fargo, and Citigroup wasn't the downgrade in their credit rating itself: it was the signal, reported by the New York Times, that the federal government is not going to step in and save the big banks from themselves this time: The downgrades were driven by Moody’s conclusion that the federal government was less likely to step in and provide support for a faltering big bank the way it did after the 2008 collapse of Lehman Brothers, when Washington executed a series of actions including capital infusions and credit guarantees to halt the spreading panic. Read more