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Pisani: S&P Rejects 'Too Big to Fail'

Standard and Poor's revised their credit outlook on Citigroup and Bank of America to Negative from Stable.

Traders noting that Standard and Poor's is attempting to remove the Too Big To Fail premium that has been enjoyed by these large banks, which has been a major help to their credit ratings.

They are concerned the government may not step in should another crisis occur:

"The outlook revision reflects our increased uncertainty about the U.S. government's willingness to provide additional extraordinary support to highly systemically important financial institutions in a way that will benefit debt holders," S&P wrote this morning.

But as one trader wrote to me, "are they saying that because they don't think the government WANTS to save them or because they are afraid the government WON'T be able to save them?"

Citi up 0.6 percent, B of A down 0.7 percent at this writing.

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Compare with Other Big Financials:

JPMorgan Chase

Morgan Stanley

HSBC

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