Banking Industry: Fitch Cuts Ratings On Several Global Banks including Bank of America; Warns Of Volatility - by David Benoit

Fitch Ratings Service cut ratings on several global banks including Bank of America Thursday, warning that the industry is too vulnerable to global mood swings and faces challenges from changing regulations.

This is the latest blow to the banking world struck by the ratings agencies. S&P Ratings Service had downgraded slews of banks globally as it relaunches the criteria it uses to score the industry. S&P also warned about concerns in the global economy and the removal of the U.S. government's extraordinary support.

The issuer ratings on Bank of America Corp. (BAC), Barclays PLC (BCS), BNP Paribas S.A. (BNPQY), Credit Suisse AG (CS), Deutsche Bank AG (DB) and Goldman Sachs Group Inc. (GS) were all cut. Morgan Stanley (MS) and Societe Generale S.A. (SCGLY) both had their issuer ratings confirmed but their viability ratings cut, as did the other banks. Bank of America, Barclays, Credit Suisse, Deutsche Bank, Goldman Sachs were all downgraded to A ratings. BNP Paribas was cut to an A+.

For more: UPDATE: Fitch Cuts Ratings On Several Global Banks; Warns Of Volatility - WSJ.com