Fitch Offers Grim Outlook for Banks

The steady drumbeat of bad news for banks continued Thursday, as Fitch Ratings' industry analyst said she believes financial institutions will need to continue to boost loan-loss reserves and figure out how to maintain capital levels.

Sharon Haas, managing director of Fitch's financial institutions group, said banks with exposure to asset classes under considerable stress, including mortgages, home equity and even credit cards face a tough road ahead.

"There have been many downgrades on U.S. banks and there will likely be more downgrades," Haas said at Fitch's Global Banking Conference hosted in New York on Thursday morning. ...