World's largest banks downgraded
Las Vegas, NV (KTNV) -- Wall Street is reeling after being dealt a big blow.
Moodys Investor Services has downgraded more than a dozen of the world's biggest banks.
The question is -- what does it mean for us?
Banks like Bank of America, JP Morgan Chase, Citigroup and Goldman Sachs have all been downgraded.
The downgrade is in reaction to the anemic economic growth, tougher regulations and nervous investors.
The downgrade means that it will cost the banks more to borrow money and do business.
And that means it will be more difficult and more expensive for consumers to get loans on everything from cars to mortgages to small businesses.
Some analysts say that despite the negative effect this will have on lending, it "could" help bring big banks back to reality.
Citigroup, Morgan Stanley, Bank of America and the Royal Bank of Scotland have all dismissed the downgrades as "backward looking" and are insisting business is not as bad as Moody says.