Moody's said that US banks' second....>

US CORPORATES: Moody's said that US banks' second quarter was "highlighted by

higher profitability, loosening consumer underwriting standards, and slow moving

regulatory reform." David Fanger, a Moody's Senior Vice President noted

"weakness in fixed income, currencies, and commodities (FICC) trading at global

investment banks was generally offset by strength in other businesses." 

- He said "capital markets revenues retrenched from a strong first quarter,

driven mainly by renewed weakness in FICC." He added "higher short-term interest

rates provided less of a boost in the quarter, but remained a positive lift for

Bank of America and JPMorgan Chase versus a year ago period. As well, higher

equity market valuations boosted asset management and wealth management

results."

- He said "while capital ratios at the banks are strong, there is an expectation

for a decline, more broadly, owing to higher payouts via dividends and share

buybacks."