Spanish Banks Downgraded as Cyprus Seeks Bailout
The troubled eurozone continued to experience turmoil as Moody’s downgraded 28 Spanish banks and Cyprus requested a bailout that could amount to more than half its economy.
Spanish Banks Downgraded
Moody’s cut the ratings of 16 Spanish banks, taking Banco Santander and Banco Bilbao Vizcaya Argentaria down three notches each. Fitch, meanwhile, dropped Greece into its lowest level in junk territory.
Eurozone Banks Boost Capital by Redefining Risk
Some Eurozone banks are redefining risk in order to meet capital requirements. Many officials and banking experts say the practice is legal but undermines the goal of ensuring the financial institutions are healthy.