Moody's, Ratings Agency | featured news

Moody's downgraded Bank of America's and Wells Fargo's long-term ratings and the short-term ratings of Citigroup, saying it believes the U.S. government is less likely to support the banks if needed.

European stock futures declined Wednesday as Moody’s Investors Service downgraded Societe Generale SA and Credit Agricole SA and Chinese Premier Wen Jiabao said developed nations should not rely on China to bail them out. U.S. futures and Asian shares dropped.

Ratings agency Moody's on Monday suggested the United States should eliminate its statutory limit on government debt to reduce uncertainty among bond holders.

The spot price of gold set fresh intraday records after Moody's put its long-standing triple-A rating of U.S. Treasurys on review, triggering fresh buying of the yellow metal and prompting bulls to eye a break above $1,600 a troy ounce.

Ratings agency Moody's warned on Thursday it would consider cutting the United States' coveted top-notch credit rating if the White House and Congress do not make progress by mid-July in talks to raise the debt limit.

Moody's Investors Service said it may downgrade the debt ratings of Bank of America Corp, Citigroup Inc and Wells Fargo & Co, citing concerns about waning political willingness to offer support for the largest U.S. banks.

Regulators took new steps Wednesday to overhaul the firms whose rosy credit ratings inspired overconfidence in investments tied to toxic mortgages. The Securities and Exchange Commission proposed rules meant to improve the system by which such firms as Moody’s and Standard & Poor’s assign ratings.