Skip to comments.BANK DOWNGRADE RAMPAGE: Goldman, BOA, Morgan, Wells Fargo, And Citigroup Just Got Cut By S&P
Posted on 11/29/2011 2:13:06 PM PST by blam
BANK DOWNGRADE RAMPAGE: Goldman, Bank Of America, Morgan Stanley, Wells Fargo, And Citigroup Just Got Cut By S&P
Nov. 29, 2011, 4:48 PM
Standard & Poor's ratings service just cut the ratings of Goldman Sachs, Bank of America, Morgan Stanley and Citigroup from A to A-, according to Bloomberg.
Wells Fargo was also cut from AA- to A+. The agency gave both Wells Fargo and Goldman Sachs have a negative outlook.
Those cuts were part of more than 37 ratings reviewed by the agency. Bloomberg says those are dependent upon "criteria change[s]" that were published on November 9.
Other banks mentioned in the report were RBS, HSBC, UBS, BBVA, Bank of New York Mellon, Barclays, and Lloyds.
The downgrade on Bank of America could cause the bank to scrounge around for up to $5.1 billion to meet collateral regulations.
(Excerpt) Read more at businessinsider.com ...
Can someone tell me exactly what this means? If you have money in one of these banks, should you take it out?
And didn't the Fed just dump several hundred billion worth of quantitative easing slush into the BofA? And didn't the banksters "earn" a good chunk of the $14 billion in interest paid by taxpayers on their slush? And isn't the stock about to break $5 which will cause it to be delisted from the NYSE and thus save millions more in expenses?
Nope. Can't possibly be true!
The government cannot afford to let all of these "too big to fail" banks go under. They will likely engage in further "accommodations" and "easing" and "stimulus programs" to keep their sorry butts afloat ... for a while. Then, when the banks switch from "too big to fail" to "too big to bail," Bernack and the gang of idiots at the Fed will probably allow the banks to repudiate their debt obligations in some form or fashion. Meanwhile, as long as your account is not too large, you will be protected by the FDIC.
Of more concern, all of this Fed action will cause massive money printing which will lead to massive inflation. Thus, you're crazy to keep more than a nominal sum of money in cash. You should consider physical precious metals as an alternative.