REFILE-UPDATE 1-Fitch downgrades UBS, puts other banks on review

* Fitch downgrades UBS rating to A from A+* Seven other U.S. and European banks under review* Economic, market, regulatory challenges citedBy Lauren Tara LaCapraOct 13 (Reuters) - Fitch Ratings downgraded UBS AG on Thursday and placed seven other U.S. and European banks on credit watch negative, citing challenges in the economy and financial markets, as well as the impact of new regulations.The ratings agency lowered UBS’s long-term issuer default rating to A from A+.Fitch is also reviewing ratings for Barclays Bank Plc , BNP Paribas , Credit Suisse Group AG , Deutsche Bank AG , Societe Generale , Bank of America Corp , Morgan Stanley and Goldman Sachs Group Inc for further possible downgrades.The cuts would in most cases be one notch and in some cases two notches, Fitch said. A lower bond rating can make debt more expensive to issue and lead to higher collateral requirements.Earlier on Thursday, Fitch also lowered its ratings on Royal Bank of Scotland and Lloyds Banking Group two notches to A from AA-.Exposure to the European debt crisis and concern about the business model of pure-play investment banks were catalysts for most of the ratings actions, Joo-Yung Lee, a managing director in Fitch’s financial institutions group, told Reuters.”Some of these banks have greater reliance on wholesale funding and greater reliance on what we view as volatile trading earnings,” Lee said. “That’s particularly true of Goldman Sachs and Morgan Stanley in the U.S. They are less diverse than their global universal bank peers.”In the case of Bank of America, its exposure to mortagage-related litigation was a driver for Fitch’s review. Competitors like Wells Fargo & Co and JPMorgan Chase & Co were not targeted because they have diverse business models, steady funding streams and no company-specific issues that put them at serious risk, Lee said.Fitch does not have a specific deadline to finish its review, but Lee said it hopes to resolve the matter quickly to reduce market uncertainty.

Anti-Wall St. protesters ready to block clean-up

NEW YORK Oct 13 (Reuters) - Anti-Wall Street protesters threatened on Thursday to block any efforts by clean-up crews to enter their camp to clear away three-weeks worth of debris, raising anxiety about a potential showdown between demonstrators and police.While New York Mayor Michael Bloomberg has said the protests by the Occupy Wall Street movement can continue as long as laws are obeyed, the city has become concerned over the build-up of trash and general wear and tear on Zuccotti Park, headquarters for the demonstrators.Bloomberg visited protesters at the park on Wednesday night and informed them it would be cleaned by work crews on Friday.Zuccotti Park is about five blocks from City Hall, located in lower Manhattan.Occupy Wall Street pledged to resist any effort by cleaning crews or police to enter the park, asking protesters to create a human chain around the area to “peacefully/non-violently stand our ground,” according to a post on its Facebook page.The movement, which began on Sept. 17 when protesters set up camp in Lower Manhattan, plans to undertake its own clean-up effort and sent out requests on Thursday for mops, brooms, garbage bags and power washers.Since an unremarkable beginning, the protests have spread across the United States, as people in other cities take up the cry against the billions of dollars in bank bailouts doled out during the recession that is allowing banks to resume earning huge profits while many average Americans lost their jobs and savings.In New York, residents have complained about loud music at night, including bongo playing, and filthy conditions at Zuccotti Park, overseen by Brookfield Office Properties Inc. City officials said they planned to clean the park in stages, and allow protesters to return once the work is complete.