BofA and Citi warned over credit ratings

The Financial Times reports:

The planned overhaul of US financial rules prompted Standard & Poor’s to warn on Tuesday it might downgrade the credit ratings of Citigroup and Bank of America on concerns that the shake-up would make it less likely that the banks would be bailed out by US taxpayers if they ran into trouble again.

The move came in spite of S&P admitting that Citi and BofA, two of the world’s largest lenders, had bolstered their balance sheets with fresh capital and improved performance in recent months.