JPMorgan Chase & Co., a commercial and investment bank that was once thought to be one of the most stable, had its rating outlook cut to negative by Moody’s Investor Service. Indeed, the bank which purchased Bear Stearns after it had essentially failed last March and who purchased Washington Mutual after the FDIC had placed it into receivership was once seen as a beacon of banking stability. Now, with the expectation that the financial institution will be hit with bad loans and credit defaults, the lender’s status is in danger.
The news of this release may spark volatility in equity markets throughout European and U.S. trading. As such, those pairs which have been estimated to be vehicles for risk aversion, the U.S. Dollar against the Euro for example, may see their respective price action push full steam ahead.
