This transcript is automatically generated
-- back to Elizabeth McDonald who has more detail on this breaking story as it develops was what -- you have -- Melissa underscore what the senator was just saying essentially Moody's is saying and very again very pointed language.
No or any exposure to -- Euro crisis rate at Bank of America Citigroup Morgan Stanley and Royal Bank of Scotland.
Also we've got -- in news break is still that they have -- Moody's has a negative outlook on Citigroup.
Goldman Sachs JPMorgan.
Chase and also Morgan Stanley Bank of America now has a stable outlook.
So what that means is when you see a credit rating agency changing it's outlook possibly saying it's a negative outlook.
That's still opens -- door to a further downgrade in the future.
Also -- have news breaking from S&P S&P telling Fox Business it will not act anytime soon on any further bank downgrades.
It is telling -- visit is business it usually does its ratings review.
In the -- also in May see something from -- S&P did downgrade of fifteen banks last November.
Back to Melissa -- and Liz let me keep it.
-- for 12 because I'm looking after hours trading right now and you see that those stocks are trading higher which tells you.
Right -- that this is basically what the market was expecting as we were all reporting all day long that these downgrades were imminent that this is well telegraphed.
So now traders are back in the market at least -- after hours or buying business.
Yeah that's right Melissa in fact you know Moody's said that there -- gonna make this move you know they telegraphed its going back to February but.
What is interesting is when you see that debt write it trading action in other words how the banks the debt is trading.
And they you're -- basically almost junk level status of banks like Morgan Stanley.
And you've seen it for Citigroup sometime in other words are banks all barring costs have risen in some cases to nearly five point 8%.
On the banks some barring costs because of this credit rating action so whether that got that transfers to -- low cost for individuals.
That remains to be seen -- -- -- -- Kansas city's scrambling and money fund scrambling.
On the news that Moody's -- taken these rating downgrades to the banks -- -- we're gonna see further shake down further saw a fall out tomorrow.
Still remains to be seen back to Melissa Liz thank you so much we are so popular happy on the breaking news -- hourly associate --