Posted on 06/21/2012 1:32:22 PM PDT by SeekAndFind
Moody's Ratings is set to downgrade the world's largest banks at 4 p.m., according to new reports out of CNBC.
The network says sources tell it Citi, J.P. Morgan Chase, and Goldman Sachs will be hit with two notch downgrades. Bank of America is expected to be cut one notch by Moody's.
Morgan Stanley, which is also on the list of banks Moody's said it would take action against, is said to be downgraded as well.
Nine European banks are expected to be included in the downgrade, which earlier reports noted would include Barclay's, UBS, HSBC, Lloyd's, and RBS.
(Excerpt) Read more at businessinsider.com ...
Not possible. I have it on good authority the private sector is doing fine.
Anyone with significant European exposure is going to experience some pain.
As bad as things feel here, Europe is an absolute train wreck.
I’m no financial guru but it sure seems to me like Cloward Piven got away from them and now the real hell is about to start.
This has also happened Unexpectedly™....not.
Executive bonuses to be distributed at 4:15 p.m....
You sir win funniest comment of the day.
Were whispers about this the reason the market cratered today?
If Morgan Stanley finds itself with a three notch downgrade, it will be staring right in the face of a required $10 billion margin call. That’s 1/3 of their market cap. I love the smell of annihilation in the afternoon.
After the Market closed.
Perhaps. But I so wish it wasn’t.
More here on cnbc: http://www.cnbc.com/id/47903018
What was Obama's stress test that passed the Banks a fraud?
Yep. To paraphrase Margaret Thatcher, the European Socialists are about to run out of other people’s money.
The last time this happened the DJIA went up 490 points the next day.
Don’t worry, we can always print more.
Hmmm...catalyst for a bank run?
This is why the pressure is on Merkel to buy bonds from the PIGS. Private banks already are overloaded. Any write offs or default are going to kill them. And, given that we are part of a World Economy, it cannot be walled-off from the US economy.
As things have progressed the last four years it has become more and more clear that none of these authorities knows what to do. Just like in the early 1930s the monetary and financial institutions blindly move from one ineffectual policy to another. And political considerations prevent them from taking a course and sticking with it which might even work. But moving back and forth between prescriptions just makes the disease worse.
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