Bank downgrades could hurt loans, credit cards |

Logo of the United States Federal Deposit Insurance Corporation, which incorporates the seal. (Photo credit: Wikipedia)

When a vital bank’s credit rating is cut, it deals a psychological blow — to customers, a open and financial markets.

So Thursday’s downgrading of 15 of a world’s largest banks is roughly certain to means far-reaching concern. Most deposits are ideally safe, though a downgrades could harm people in some-more pointed ways: Banks competence jack adult fees and competence be demure to lend, that could impact mortgages, credit cards and even a pursuit market.

“It is normal that a initial thing that people worry about is either their income is safe,” pronounced Jim Nadler, arch handling officer during Kroll Bond Ratings Agency. “But a genuine costs competence be hidden.”

Bank deposits adult to $250,000 are guaranteed by a Federal Deposit Insurance Corporation.

But a downgrades come during a gossamer time for banks. An avalanche of new regulations adopted after a financial predicament has wiped out many of a fees they charged on credit cards and checking accounts. Banks are also barred from creation remunerative bets in a batch and bond markets, expelling billions of dollars in trade income. ... Continue to read.

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