Quick Blow by Blow of the Moody’s Bank Downgrades, Not So Bad After All

We had been informed that Moody’s was going to finally release its massive downgrade of the banking system today. The Moody’s warning came back in February that the downgrade was coming, so this has been four months in the making.

24/7 Wall St. is throwing up a cheat sheet to show what the downgrade on each bank was, as well as the initial reaction in the shares: JP Morgan Chase & Co. (NYSE: JPM) was down 2.1% at $35.69 right before the close and the stock is up 1.2% at $35.95; Bank of America (NYSE: BAC) was down 3.6% at $7.84 right before the close and the stock is up 1.6% at $7.95; Citigroup, Inc. (NYSE: C) was down 2.8% at $28.03 late in the day and the stock is up 0.6% at $28.00; Wells Fargo & Company (NYSE: WFC) was down only 0.7% at $32.58 late in the day and shares are up 0.2% at $32.40. Goldman Sachs Group Inc. (NYSE: GS) was down 2.3% at $94.33 late in the day and shares are up 0.6% at $94.46; Morgan Stanley (NYSE: MS) closed down 1.7% at $13.96 and the stock is now up 3.5% at $14.45.

Here is a combined cheat sheet on each of the downgrades, minus a couple of banks that do not trade here. Moody’s has taken action on the following holding company ratings and on the operating company ratings:

Bank of America Corporation (NYSE: BAC): Long-term senior unsecured debt to Baa2 from Baa1, outlook negative; Short-term P-2 affirmed; OPERATING COMPANY: Long-term deposit rating to A3 from A2, outlook stable; Short-term to P-2 from P-1.

Barclays plc (NYSE: BCS): Long-term issuer rating to A3 from A1, outlook negative; Short-term to P-2 from P-1; OPERATING: Long-term issuer rating to A2 from Aa3, outlook negative; Short-term P-1 affirmed.

Citigroup Inc. (NYSE: C) Long-term senior debt to Baa2 from A3, outlook negative; short-term P-2 affirmed; CITIBANK OPERATING: Long-term deposit rating to A3 from A1, outlook stable; Short-term to P-2 from P-1.

Credit Suisse Group AG (NYSE: CS): Provisional senior debt to (P)A2 from (P)Aa2, outlook stable; Provisional Short-term (P)P-1 affirmed; OPERATING: Long-term deposit and senior debt rating to A1 from Aa1, outlook stable; Short-term P-1 affirmed.

Deutsche Bank AG (NYSE: DB) OPERATING RATING: Long-term deposit rating to A2 from Aa3, outlook stable; Short-term P-1 affirmed

The Goldman Sachs Group, Inc. (NYSE: GS): Long-term senior unsecured debt to A3 from A1, outlook negative; Short-term to P-2 from P-1; OPERATING (BANK USA): Long-term deposit rating to A2 from Aa3, outlook stable; Short-term P-1 affirmed.

HSBC Holdings plc (NYSE: HBC): Long-term senior debt to Aa3 from Aa2, outlook negative; Provisional Short-term (P)P-1 affirmed; HSBC Bank plc: Long-term deposit rating to Aa3 from Aa2, outlook negative; Short-term P-1 affirmed.

JPMorgan Chase & Co. (NYSE: JPM): Long-term senior debt to A2 from Aa3, outlook negative; Short-term P-1 affirmed; CHASE OPERATING: Long-term deposit rating to Aa3 from Aa1, outlook stable; Short-term P-1 affirmed

Morgan Stanley (NYSE: MS): Long-term senior unsecured debt to Baa1 from A2; outlook negative; Short-term to P-2 from P-1; OPERATING: Long-term deposit rating to A3 from A1, outlook stable; Short-term to P-2 from P-1.

Royal Bank of Canada (NYSE: RBC): Long-term deposit rating to Aa3 from Aa1, outlook stable; Short-term P-1 affirmed .

Royal Bank of Scotland Group plc (NYSE: RBS): Long-term senior debt to Baa1 from A3, outlook negative; Short-term P-2 affirmed. OPERATING: Long-term deposit rating to A3 from A2; outlook negative; Short-term to P-2 from P-1.

UBS AG (NYSE: UBS) Operating: Long-term debt and deposit to A2 from Aa3, outlook stable; Short-term P-1 confirmed.

JON C. OGG