CCTV.com - CNTV English - CCTV News


Homepage > News > Biz >

S&P: Dodd-Frank not to affect ratings on largest U.S. banks

08-10-2012 07:34 BJT

NEW YORK, Aug. 9 (Xinhua) -- Ratings agency Standard &Poor's said Thursday that new regulations under the Dodd-Frank Act will not affect the ratings of the largest U.S. banks.

The S&P made the announcement in a research article entitled " Two Years On, Reassessing The Cost Of Dodd-Frank For The Largest U. S. Banks."

The article said that although it had been two years since the Dodd-Frank Wall Street Reform and Consumer Protection Act (DFA) was signed into law, many rules were still not in place or final.

"Considering what we know now about rules and regulations that have yet to be implemented, and based on our current forecasts for banks' capital and earnings, we don't believe the financial impact of regulatory reform will, in itself, affect our ratings on the eight large U.S. banks," said Standard &Poor's credit analyst Matthew Albrecht. "However, proposed rules and regulations could change our assessments of banks' business or risk positions, which could ultimately lead to rating actions in isolated cases."

The eight largest U.S. banks are Bank of America, Citigroup, Goldman Sachs, JPMorgan Chase, Morgan Stanley, PNC Financial Services, U.S. Bancorp, and Wells Fargo, which S&P believed will bear the brunt of the financial impact.

The firm estimated the DFA regulations could reduce pretax earnings for the eight banks by a total of 22 billion dollars to 34 billion dollars annually, higher than previous estimates of 19. 5 billion dollars to 26 billion dollars.

"Most of the higher estimate reflects our view that regulators could take a more strict interpretation of the Volcker Rule than we previously expected. We expect most final rules to be in place and affecting results toward the end of 2013 or the beginning of 2014, as regulators implement the provisions," Albrecht said.

 

 

Editor:James |Source: Xinhua

Hot Videos view more

The celebrations are still continuing as the victorious coach, Joachim Loew, has been honored for his achievement in his hometown of Freiburg.
Germany coach Loew honored in hometown of Freiburg

Chinese men´s national team continued its preparations for next year´s Asian Cup, as they managed a one-all draw against visitors Jordan during a football friendly in Harbin, the capital city of Northeast China´s Heilongjiang Province.
China held to 1-1 draw by Jordan

The defending world champs came into the contest with a perfect 6-and-oh record, but they would be in for a tough first half before opening things up in the second.
USA beat Slovenia 119-76 in quarter-finals

Hot Stories more

UK authorities believe killer of James Foley is a British national

Across the UK the hunt is on for James Foley’s killer, who authorities believe is a British national. As Richard Bestic reports from London, Prime Minister David Cameron cut short his summer break to lead his government’s response.

Israeli war jets renews Gaza strike as truce talks stalled

Three Palestinians were killed and 40 others wounded in the intensive Israeli war jets´ airstrikes on the Gaza city on Tuesday night, shortly before an end of a 24-hour ceasefire in the Gaza Strip,

Missouri police arrest dozens after violent night

As the protests in the town of Ferguson, Missouri turned violent with police facing ´heavy gunfire´ from some ´criminal elements´, cops fired tear gas, stun grenades and arrested 31 demonstrators on Monday night.

Picture in news more

More Video News

Choose TV Program