U.S. Banks Brace for a Tough 2008

Credit and liquidity concerns will weigh on the sector, says S&P Ratings, but weaker earnings won't necessarily translate into lower ratings

The fourth quarter of 2007 was difficult for many financial institutions, and the ensuing months will continue to test the sector, perhaps significantly so, depending on the length and depth of the economic slowdown. With the rapid speed at which events have unfolded since last summer, earnings aren't the only story anymore.

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