Anxiety grips state's economy
The Federal Deposit Insurance Corp. told banks it will still consider US Treasuries just as safe as it did before the downgrade. And the National Association of Insurance Commissioners said the downgrade will have no impact on insurer investments in US bonds.
Boston-based Silver Bridge Advisors LLC predicted the downgrade would increase volatility, since it comes as investors are already skittish about the economy and various debt crises. But Silver Bridge said its research of past downgrades found there was no consistent trend in how stocks reacted.