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Moody's Warns 17 Banks of Downgrade Credit Suisse, UBS And Morgan Stanley Could Fall 3 Levels
Business Insider ^ | 02/16/2012 | Sam Ro

Posted on 02/16/2012 9:04:45 AM PST by SeekAndFind

Moody's announced that it may soon downgrade the long-term credit ratings of 17 of the largest banks in the world.

"Capital markets firms are confronting evolving challenges, such as more fragile funding conditions, wider credit spreads, increased regulatory burdens and more difficult operating conditions," wrote the credit ratings agency in a statement. "These difficulties, together with inherent vulnerabilities such as confidence-sensitivity, interconnectedness, and opacity of risk, have diminished the longer term profitability and growth prospects of these firms."

Credit Suisse, Morgan Stanley and UBS could be downgraded by up to three notches.

Barclays, BNP Paribas, Citigroup, Credit Agricole, Deutsche Bank, Goldman Sachs, HSBC Holdings, JPMorgan Chase, Macquarie and Royal Bank of Canada could be downgraded by up to two notches.

Bank of America, Nomura, Royal Bank of Scotland and Societe Generale could lose one notch.

Here's the full press release from Moody's:

Moody's Reviews Ratings for Banks and Securities Firms with Global Capital Markets Operations Global Credit Research - 15 Feb 2012

New York, February 15, 2012 -- Moody's Investors Service has announced a review of 17 banks and securities firms with global capital markets operations. Underpinning this review is Moody's view that these firms face challenges that are not fully captured in their current ratings. Capital markets firms are confronting evolving challenges, such as more fragile funding conditions, wider credit spreads, increased regulatory burdens and more difficult operating conditions. These difficulties, together with inherent vulnerabilities such as confidence-sensitivity, interconnectedness, and opacity of risk, have diminished the longer term profitability and growth prospects of these firms.

Nine of the 17 banks and securities firms included in Moody's review are headquartered in Europe and are also affected by other adverse drivers identified in a separate announcement on European banks,

(Excerpt) Read more at businessinsider.com ...


TOPICS: Business/Economy; Society
KEYWORDS: bankdowngrades; downgrade; eucrisis; moodys; morganstanley; ubs

1 posted on 02/16/2012 9:04:57 AM PST by SeekAndFind
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To: SeekAndFind

What, only 17 banks will be downgraded, and not 18? And Morgan Stanley will only fall 3 levels, and not 4?

Why, the stock market will rally on this news! That’s how crazy this market is.


2 posted on 02/16/2012 9:14:27 AM PST by Leaning Right (Why am I carrying this lantern? you ask. I am looking for the next Reagan.)
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To: Leaning Right

“Why, the stock market will rally on this news! That’s how crazy this market is.”

Why, it’s “Already Priced In!”
Don’t worry though, the Obama Plunge Protection Team will TWIST the markets enough with your tax money to keep your 401K alive.

At least until election day....


3 posted on 02/16/2012 9:27:00 AM PST by tcrlaf (Election 2012: THE RAPTURE OF THE DEMOCRATS)
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To: tcrlaf

LOL, I forgot that these problems were already priced in!

Besides that, the market will “climb the wall of worry”. Cue the orchestra to play “Happy Days Are Here Again.”


4 posted on 02/16/2012 9:39:41 AM PST by Leaning Right (Why am I carrying this lantern? you ask. I am looking for the next Reagan.)
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To: SeekAndFind

Market rallies on “better than expected” news. Just more water for the sprouts.


5 posted on 02/16/2012 9:43:17 AM PST by jwalsh07
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To: SeekAndFind

Maybe I keep missing it, but I never see anything from S&P anymore; just Moody’s and Fitch. Blackout by orders from the WH?


6 posted on 02/16/2012 10:10:22 AM PST by MichaelCorleone (Stop feeding the beast; spend money only with those who support traditional American values.)
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