Dodd-Frank Act Continues to Cast Its Shadow Over Banking Recovery

The Bedford Report Provides Investment Research on Bank of America & Wells Fargo

NEW YORK, NY -- (Marketwire) -- 06/03/11 -- Nearly a year after being passed, the Dodd-Frank financial reform laws continue to cast a shadow over the Major Banking Sector. Major Banks have already begun to restructure various programs involved with and the methodology behind debit card usage in response to the Dodd-Frank Act's Durbin amendment that restricts bank's ability to charge fees for debit card transactions to cover their costs. In addition, the debt ratings of some major banks are now being called into question amid regulatory concerns. The Bedford Report examines the outlook for companies in the Financial Sector and provides equity research on Bank of America Corporation (NYSE: BAC) and Wells Fargo & Co. (NYSE: WFC). Access to the full company reports can be found at:

www.bedfordreport.com/2011-06-EQUITY-RESEARCH-ON-BAC

www.bedfordreport.com/2011-06-EQUITY-RESEARCH-ON-WFC

Earlier this week Moody's Investors Service said it may downgrade the debt ratings of Bank of America Corp and Wells Fargo & Co, amid concerns about the regulatory environment facing the largest US banks. Moody's explained that the current ratings are buoyed by "uplift" from the government support of the banking system during the financial crisis. But the Dodd-Frank financial reform law of last year has changed the level of government support that large US banks can count on, meaning such uplift may no longer be appropriate.

"The U.S. government's intent under Dodd-Frank is very clear," said Moody's Senior Vice President Sean Jones. "The support assumptions built into these banks' ratings are unusually high, which may no longer be appropriate in the evolving post-crisis environment."

The Bedford Report releases market research on the Financial Sector so investors can stay ahead of the crowd and make the best investment decisions to maximize their returns. Take a few minutes to register with us free at www.bedfordreport.com and get exclusive access to our numerous analyst reports and industry newsletters.

Moody's rates Bank of America and Wells Fargo's senior subordinated debt at A2 and A1, respectively. All denote satisfactory credit quality. The review doesn't affect the banks' debt that is guaranteed by the Federal Deposit Insurance Corp, which remains stable at Aaa, the highest possible rating.

Bank of America spokesman Jerome Dubrowki wrote that the bank believes its "standalone rating should be higher given the progress we have made to strengthen our balance sheet, improve capital and liquidity, and reduce our risk profile."

The Bedford Report provides Market Research focused on equities that offer growth opportunities, value, and strong potential return. We strive to provide the most up-to-date market activities. We constantly create research reports and newsletters for our members. The Bedford Report has not been compensated by any of the above-mentioned companies. We act as an independent research portal and are aware that all investment entails inherent risks. Please view the full disclaimer at: http://www.bedfordreport.com/disclaimer.

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