Moody's lowers major banks' credit ratings

Moody's Investors Service lowered its credit ratings for the senior holding companies of Morgan Stanley, JPMorgan Chase, Goldman Sachs Group and Bank of New York Mellon. "We believe that U.S. bank regulators have made substantive progress in establishing a credible framework to resolve a large, failing bank," said Robert Young, a Moody's managing director. "Rather than relying on public funds to bail out one of these institutions, we expect that bank holding company creditors will be bailed-in and thereby shoulder much of the burden to help recapitalize a failing bank."

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