Global financial markets regained the scene of banking turmoil months ago, after Moody's downgraded 10 mid-sized U.S. banks and put six large U.S. banks under review for a possible downgrade. Italy also dealt a surprise blow to its banks and sent shockwaves across the sector in Europe after imposing a one-time tax of 40 percent on profits earned by banks from higher interest rates, prompting investors to worry that other countries would follow suit.
Global banks were shaken by these developments, with major shares in U.S. banks falling despite not being audited by Moody's, with JPMorgan down 2 percent and Bank of America losing more than 3 percent. Shares of Citigroup, Wells Fargo, Goldman Sachs Group and Morgan Stanley fell between 2 percent and 4 percent.
Source (Al-Asharq Al-Awsat Newspaper, Edited)
