Moody's Investors Service warned that regulatory reform legislation as proposed may force it to downgrade the ratings of major banks. That could raise debt costs for companies such as Citigroup, Bank of America and Goldman Sachs Group. The bill "contains provisions that, if passed into law, could weaken our assumptions regarding the probability that the U.S. government would support the largest, most systemically important financial institutions," said Robert Young, managing director for Moody's North American Bank Ratings.

Related Summaries