Abstract: Large complex U.S. banks' weak third-quarter results demonstrate just how severe the operating environment has become. All of the large complex banks' earnings were lower on a linked-quarter basis, and Citigroup and Wachovia Corp. posted sizable losses in the quarter. We believe that the recession and increased unemployment also weighed heavily on credit performance. The U.S. Treasury's three-pronged support plan to strengthen U.S. banks' balance sheets and restore confidence in the financial system arrived on Oct.14. Following on the heels of concerted moves by European central banks, and central banks around the world, the U.S. plan employs broadly similar measures aimed at increasing financial institutions' access to funding and bolstering capital. The historic events of the third quarter and further

Brief Excerpt: RESEARCH Ratings Definitions Industry Report Card: Large Complex U.S. Banks Report Dismal Third-Quarter Results, But The Future May Brighten With The U.S. TreasuryaÇÖs Support Plan Publication date: 05-Nov-2008 Primary Credit Analyst:...

Report Type: Commentary
Sector: Global Issuers, Public Finance, Structured Finance
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 S&P Credit Research
S&P Credit Research provides analysis on issuers and debt obligations of corporations, states and municipalities, financial institutions, insurance companies and sovereign governments. S&P also offers insight into the credit risk of structured finance deals, providing an independent view of credit risk associated with a growing array of debt-securitized instruments.