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), US Bancorp (USB), Capital One Financial (COF) BB&T (BBT) and Fifth Third Bancorp (FITB).

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

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.

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