Moody’s Bank Downgrades Assailed as ‘Too-Big-to-Fail’ Persists
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Moody’s Investors Service, the ratings firm that downgraded the credit of Bank of America Corp. and Wells Fargo & Co., said future U.S. bailouts of financial firms are less likely. Some analysts and investors disagree.
“We have not gotten beyond too-big-to-fail,” said Jason Brady, a managing director at Santa Fe, New Mexico-based Thornburg Investment Management Inc., who helps oversee about $76 billion. “We had an experiment where we let one go and it didn’t work out so hot. Now they are going to be more likely to let somebody go? I don’t think so.”