On Tuesday, Moody’s reduced the credit ratings of ten regional American banks while threatening to downgrade many other bigger banks.
The ten banks targeted by Moody’s included Amarillo National Bancorp, BOK Financial, Commerce Bancshares, Fulton Financial, M&T Bank, Old National Bancorp, Pinnacle Financial Partners, Prosperity Bancshares, and Webster Financial. Shares of the major banks JPMorgan, Bank of America, Citigroup and Wells Fargo plunged as a result.
Moody’s Investors Service revealed it would review the ratings of six other institutions, including Bank of New York Mellon, Northern Trust, State Street, and US Bancorp. In addition, Moody’s assigned a negative outlook to 11 other banks, The Wall Street Journal reported. The Dow Jones Industrial average plunged 3.75%.