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The New York Times reported that Moody’s Investor Service said it will decide in mid-May whether to lower the credit ratings of 17 global financial companies. The report cites Morgan Stanley to be the most vulnerable and that Moody’s may cut the bank’s rating by as much as three notches.
The report also states that Bank of America and Citigroup may also fall to the same level as Morgan Stanley.
The three banks that stand to be the most affected by a ratings downgrade have already said that they would have to put up billions of dollars more in collateral to back trading contracts.