Downgrades May Stir Up A Hornets' Nest For Banks

Law360, New York (June 22, 2012, 9:17 PM EDT) -- Thursday's credit downgrades of 15 of the world's largest banks by Moody's Investor Service could leave the institutions exposed to new suits and revitalized claims from angry shareholders, and to scrutiny from regulators newly empowered by the Dodd-Frank Act, experts say.

Moody's, which warned several big banks of a potential downgrade as early as February, finally delivered the bad news on Thursday, slashing the credit ratings of U.S. giants including Citigroup Inc. Bank of America Corp. and JPMorgan Chase & Co., as well as several foreign...
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