S&P Downgrades 22 U.S. Banks

Updated from 10:12 a.m. EDT

Standard & Poor's downgraded 22 U.S. banks Wednesday, arguing more volatile financial markets and tighter regulations will create a tougher operating environment.

In addition to the downgrades, S&P lowered its outlooks on all 22 banks, suggesting "the ratings could still decline if the credit cycle is longer and/or deeper," Standard & Poor's credit analyst Roderigo Quintanilla said in a press release.

"We believe the industry is undergoing a structural transformation that may include radical changes with permanent repercussions," Quintanilla said.

Among the largest banks receiving downgrades were Wells Fargo (WFC Quote), US Bancorp (USB Quote), Capital One Financial (COF Quote) BB&T (BBT Quote) and Fifth Third Bancorp (FITB Quote).

Some other large banks affected by the move are Regions Financial (RF Quote), KeyCorp (KEY Quote) and Synovus Financial (SNV Quote).

Wells Fargo, Capital One, Fifth Third, BB&T, PNC, KeyCorp and Synovus were all falling in recent trading. US Bancorp, which on Wednesday said it was repaying its federal bailout funds, also was dropping fractionally.