Banking execs say S&P warned traders of downgrade

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Did Standard & Poor’s Corp., last week tip off stock traders to its downgrade of the U.S. government’s debt, sparking a significant selloff last Friday even after a better-than-expected jobs report?

Some people in the banking industry think so, and it could add another layer of controversy to the already-controversial decision of the big rating agency’s to slash its assessment of U.S. government bonds from its long-held Triple-A status.

Banking industry executives interviewed by FOX Business say Standard & Poor’s held a series of meetings with executives of some big banks late last week, in which executives and rating agency officials discussed what the impact of a downgrade of the U.S. treasury bond might mean for the banks’ own credit ratings.

via S&P Tipped Off Traders to Downgrade Sparking Selloff?