Moody’s Ratings cut its credit ratings on JPMorgan Chase, Bank of America and other banks on Monday, following a downgrade on the U.S. debt. The bank stocks are largely holding their ground as investors expected the news.

An economist explains why the recent credit rating downgrades for major U.S. banks might not carry a big impact.

Moody's on Monday downgraded the long-term ratings of top American lenders such as JPMorgan Chase , Bank of America and Wells Fargo , after pushing the U.S. out of top triple-A rating club over its burgeoning $36 trillion debt.