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NEW YORK, April 6 (Reuters) - Egan-Jones Ratings downgraded the credit level of the United States as Washington has struggled to reduce the federal debt burden, which is projected to surpass the size of the country's economy. The independent rating firm, which issued the downgrade late Thursday, said its senior debt rating on the United States is now AA, its third highest rating, down one notch from AA-plus. It also maintained a negative watch on the world's biggest economy as the federal debt load could rise to $16.7 trillion at the end of 2012. U.S. gross domestic product, in the...

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,...

You know there is a reason why Europe just came crawling with an advance handout looking for US assistance: Moody's jsut went apeshit on Europe. In other news, we wouldn't want to be the company that insured Moody's Milan offices.Full release:Moody's adjusts ratings of 9 European sovereigns to capture downside risksAs anticipated in November 2011, Moody's Investors Service has today adjusted the sovereign debt ratings of selected EU countries in order to reflect their susceptibility to the growing financial and macroeconomic risks emanating from the euro area crisis and how these risks exacerbate the affected countries' own specific challenges.Moody's...

Moody's actions can be summarised as follows: - Austria: outlook on Aaa rating changed to negative - France: outlook on Aaa rating changed to negative - Italy: downgraded to A3 from A2, negative outlook - Malta: downgraded to A3 from A2, negative outlook - Portugal: downgraded to Ba3 from Ba2, negative outlook - Slovakia: downgraded to A2 from A1, negative outlook - Slovenia: downgraded to A2 from A1, negative outlook - Spain: downgraded to A3 from A1, negative outlook - United Kingdom: outlook on Aaa rating changed to negative Please see the individual country specific statements below for more detailed...

Stocks accelerated their losses Friday, on track to logging their worst session this year, after stalled debt negotiations in Greece, some disappointing economic news and reports that S&P downgraded a handful of Italian banks. In the latest round of disappointment from the euro zone, ratings agency S&P downgraded 34 of 37 Italian banks, including banking giant UniCredit, citing worries over the banking industry and economic risks in the country. The move comes after the ratings agency's downgrade of Italy's sovereign rating in January to BBB+, along with downgrades of nine other euro zone countries. All three major averages are on...

<p>Will A be the new AA+? Perhaps, if the S&P follows through with its latest threat. Bloomberg reports that [Bloomberg material cannot be posted here] . . . .</p>

FITCH GOES ON RAMPAGE: CUTS SPAIN, ITALY, BELGIUM, CYPRUS, AND SLOVENIA Simone Foxman January 27,2012 Fitch just cut the long-term issuer ratings of 5 EU countries: Belgium: AA+ to AA Spain: AA- to A Italy: A+ to A- Cyprus: BBB to BBB- Slovenia: AA- to A It affirmed Ireland's BBB+ rating with a negative outlook. Borrowing costs have been sinking for these countries lately–particularly for Italy and Spain—after the European Central Bank announced liquidity support measures in early December that have lessened mounting worries about the health of the banking system. While Fitch says that it supports EU leaders actions...

France and Austria lost their triple-A credit ratings yesterday evening—an ill-starred Friday 13th January—as seven other eurozone countries were also downgraded by US-based credit rating agency Standard & Poor’s (S&P). The move was described by European leaders as “political” and “inconsistent”, and China claimed the move cast doubt on the credibility of credit ratings agencies. The two triple-A economies were nudged down one notch by S&P, to AA+, but retain top AAA rating from the other two main ratings agencies, Moody's and Fitch. Two notches were struck from the ratings of Italy (to BBB+), Spain (to A), Cyprus (to BB+)...

The Obama administration will be asking Congress to raise the debt limit in the coming days, White House press secretary Jay Carney said on Tuesday. "I'm confident it will be executed in a matter of days, not weeks," he told reporters. The notification by the administration — which had been scheduled for last month — was delayed because Congress has been holding only pro forma sessions.

NEW YORK (CNNMoney) -- There's a good chance France and a few other euro area governments will have their credit ratings downgraded in the near future. That would mark another low point in Europe's long-running debt crisis, but it may not shock the markets. "The downgrades are likely to come sooner rather than later," said Ewen Cameron Watt, chief investment strategist for the BlackRock Investment Institute. "But we believe bond markets have largely factored them in for countries such as France, Italy and Spain." While the bond market may be prepared, the immediate response could be less sanguine in the...

FRANKFURT, Germany - Ratings agency Standard & Poors says it's putting the European Union on review for a possible downgrade of its triple-A credit rating. The move Wednesday follows up on a similar action taken Dec. 5 in regard to 15 of the 17 members of the euro because of the eurozone's debt crisis.

Ahead of a planned summit of European Union leaders, the credit rating agency Standard & Poor’s has put all 17 Euro nations on review for a credit downgrade, which means France and Germany could lose the pristine AAA ratings they presently enjoy, Bloomberg News is reporting. The euro area’s six AAA rated countries are among the nations to be placed on a negative outlook pending the result of a summit of European Union leaders on Dec. 9, the people said today on condition of anonymity because the decision has yet to be announced. The euro reversed its gains and U.S. Treasuries rose...

NEW YORK (CNNMoney) -- Another trading day and another low for Bank of America's stock. Shares of Bank of America dropped more than 3% Tuesday, hitting a new 52-week low of $5.03 -- its lowest level since March 12, 2009. After the close of trading Tuesday, Bank of America was one of 37 financial institutions downgraded by S&P. Beyond the S&P downgrade, trading could become even more complicated in Bank of America's stock, if it falls below $5. Under that threshold, many broker-dealers will not allow investors to buy or short a stock on margin, according to a spokesperson for...

Following the failure of the supercommittee, the U.S. government’s AAA credit rating was placed on a “negative outlook” Monday by Fitch Ratings, indicating a more than 50 percent chance the country gets slapped with another downgrade in the next two years. “By postponing the difficult decisions on tax and spending until after forthcoming congressional and presidential elections, the scale and pace of required deficit reduction will consequently be greater,” Fitch said in a statement. “Conversely, failure to reach agreement in 2013 on a credible deficit reduction plan and a worsening of the economic and fiscal outlook would likely result in...

Economists are warning of dire consequences if US politicians fail to make progress this weekend in tense talks aimed at reducing America's massive deficit ahead of a Wednesday deadline. The bi-partisan congressional super-committee is charged with drawing up plans for a $1.2tn reduction in the nation's deficit by the middle of next week. Failure to do so will trigger an automatic "sequester" that will make cuts of that size to defence and social welfare programmes starting in 2013. But the two sides seem far from finding a solution after clashing over tax revenues.

The president who is well on his way toward borrowing more money than any other president — the first president to downgrade the nation’s credit — had a late-night conference call with European leaders to chew them out for not meeting his standards when it comes to managing a nation’s money. From the London Daily Mail: “Barack Obama has read the riot act to the leaders of several European countries — saying more dramatic action is needed to avert a eurozone meltdown. The U.S. President made telephone calls to German Chancellor Angela Merkel, French President Nicolas Sarkozy and Italian President...

Monster Prediction From BofA: Another US Debt Downgrade Is Coming In Just A Few Weeks Joe Weisenthal | Oct. 22, 2011, 7:04 AM | 4,055 | 48 In an analyst note, Bofa/ML Ethan S. Harris drops a bit of a bombshell prediction: We expect a moderate slowdown in the beginning of next year, as two small policy shocks—another debt downgrade and fiscal tightening—hit the economy. The “not-so-super” Deficit Commission is very unlikely to come up with a credible deficit-reduction plan. The committee is more divided than the overall Congress. Since the fall-back plan is sharp cuts in discretionary spending, the...

S&P Downgrades Spain One Notch, Citing Economic Woes OCTOBER 13, 2011, 7:13 P.M. ET DOW JONES NEWSWIRES Standard & Poor's Ratings Services on Thursday downgraded Spain a notch, citing increasingly unpredictable financing conditions that could squeeze a private sector already pressured by lackluster economic growth. The ratings cut is the latest blow to a large European sovereign's credit status after S&P last month downgraded Italy a notch, citing many of the same problems afflicting euro-zone economies. S&P expects the Spanish economy will grow at about 1% in real terms next year, a drop from the 1.5% pace it forecast in...

Since one can not get a downgrade of a bank during market hours for fears of springing who knows what circuit breakers, Fitch had to wait until just after the market close to release its latest market surprise which consisted of a "watch negative" announcement on the following banks Barclays, BNP Paribas, Credit Suisse, Deutsche Bank, Goldman, Morgan Stanley; others it just slashed some by multiple notches, among which: Landesbank Berlin IDR downgraded to A+ from AA-; Lloyds Banking Group IDR downgraded to A from AA-; RBS IDR downgraded to A from AA-; and most importantly UBS IDR downgraded...

Just out... Bank of America has had its long-term senior debt cut to BAA1 by Moody's. The stock is off about 3%. It had been just barely down right before the news hit the wires. Read more: http://www.businessinsider.com/bank-of-america-just-got-downgraded-by-moodys-2011-9#ixzz1Ybk25QPB

Moody's Investors Service has downgraded the ratings of Bank of America Corporation's (NYSE: BAC) holding company to Baa1 from A2 for long-term senior debt and to Prime-2 from Prime-1 for short-term debt. The long-term deposit ratings of Bank of America N.A. (BANA) were downgraded to A2 from Aa3, while BANA's short-term rating was affirmed at Prime-1. The actions conclude a review for downgrade announced on June 2, 2011. The outlook on the long-term senior ratings remains negative. The downgrades result from a decrease in the probability that the US government would support the bank, if needed. Moody's believes that the...

S&P downgrades Italy as Greek austerity row forces global stock markets lower Credit rating agency Standard & Poor's downgraded Italy late on Monday night, on a day when panic gripped global markets as a fresh showdown over Greece renewed fears that the eurozone will be plunged into crisis. The rating for Italy, which has Europe’s second-largest debt load, was lowered from A+, S&P said in a statement. The agency said Italythe country's net general government debt is the highest among A-rated sovereigns, and now expects it to peak later and at a higher level than it previously anticipated. “In our...

Moody’s Investors Service on Wednesday downgraded French banks Credit Agricole SA and Societe Generale SA as the credit-rating company also said it has become increasingly concerned about the funding and liquidity needs of the lenders. Moody’s had said in June that it was considering downgrading France’s top three listed banks because of their exposure to Greek debt and said Wednesday that it is still reviewing BNP Paribas. The announcements came after big swings for French-bank stocks in recent days amid reports that downgrades were imminent and as investors became increasingly nervous about the banks’ funding situation. Shares in Credit Agricole...

It sounds like a storyline out of some mob movie. Executives at a big employer with ties to powerful unions use the firm's pension funds for financial gimmicks, channeling money meant for the fund into other activities and then lying to investors about the health of the enterprise. But it's not an episode of The Sopranos. It's merely a description of the financial gimmicks used by politicians in New Jersey over the last decade, the only state ever cited for fraud in its financial disclosure statements by the Securities and Exchange Commission. Maybe it was all the attention fixed on...

Moody's cuts Japan rating, blames politics By Rie Ishiguro | Reuters TOKYO (Reuters) - Moody's Investors Service cut its rating on Japan's government debt by one notch to Aa3 on Wednesday, blaming a build-up of debt since the 2009 global recession and revolving-door political leadership that has hampered effective economic strategies. Japan is preparing to elect its sixth leader in five years to replace unpopular Prime Minister Naoto Kan, under fire for his handling of the response to a March tsunami and subsequent radiation crisis at a crippled nuclear power plant. The downgrade, while not out of the blue, served...

Sharma on "special assignment"...(probably witness protection or something)...until he leaves at end of year "to pursue other opportunities." McGraw-Hill said Douglas Peterson will become president of Standard & Poor’s beginning Sept. 12. http://www.bloomberg.com/news/2011-08-23/douglas-peterson-to-become-president-of-s-p.html

Birds of a feather… S & P downgrades Obama’s and Chavez’s handling of economy NEW YORK - Standard & Poor's downgraded Venezuela's credit ratings as it implemented a new methodology more heavily focused on political risk -- a key weakness in the oil-producing country. S&P cut Venezuela's long-term sovereign rating to B-plus from BB-minus. The outlook on the new rating is stable.

The Justice Department is investigating whether the nation’s largest credit ratings agency, Standard & Poor’s, improperly rated dozens of mortgage securities in the years leading up to the financial crisis, according to two people interviewed by the government and another briefed on such interviews. The investigation began before Standard & Poor’s cut the United States’ AAA credit rating this month, but it is likely to add fuel to the political firestorm that has surrounded that action. Lawmakers and some administration officials have since questioned the agency’s secretive process, its credibility and the competence of its analysts, claiming to have found...

Together We Can Beat the Deficit We did it in the 1990s and we can do it again today. By PATTY MURRAY, MAX BAUCUS AND JOHN KERRY Our country has long been a beacon of light in the world because the American people always come together when times are tough. Over the past few months, in debating the debt ceiling and deficit reduction, that light of common cause has appeared to flicker at times in our nation's capital. As appointees to the Joint Select Committee on Deficit Reduction—12 members of Congress charged with finding $1.5 trillion in deficit reduction over...

Oh, man, what a bad day for New Jersey.First, Abercrombie & Fitch pays “Jersey Shore” “star” The Situation not to wear its clothing, and now Fitch — no relation — has gone and downgraded the entire state. What is it with these Fitches? Is anybody investigating the connection here? Full disclosure: I live in New Jersey.Fitch, the rater, not the retailer, writes: Fitch Ratings downgrades the State of New Jersey’s outstanding general obligation (GO) bonds to ‘AA-’ from ‘AA’.Fitch also downgrades to ‘AA-’ from ‘AA’ the rating on the Garden State Preservation Trust’s open space revenue bonds. Additionally, Fitch downgrades...

Fitch Ratings said Tuesday it will keep its rating on U.S. debt at the highest grade, AAA. It also says its outlook on the U.S. ratings is stable. The move gives the U.S. a reprieve after fellow ratings agency Standard & Poor's set off a tempest in the stock market last week by downgrading part of the U.S. debt rating from the highest grade to the second-highest grade. Fitch cited the United States' "flexible, diversified and wealthy economy," as well as its flexibility in monetary and exchange rates that allows it to adjust to marketplace shocks. The other main ratings...

The entire concept of winning the PR war against big government Socialism comes down to the concept of what is popularly called a meme. Just like genes, memes are capable of self-replicating, mutating and responding to targeted pressure. Memes also evolve by means of natural selection via the processes of mutation, variation, and competition. In short, strong memes can reproduce from mind to mind, will weak memes become extinct. The Democrats are very effective at using the meme idea. With most media from newspapers to magazines to cable news leaning left of center to hard left, the media of transmission...

Reporting from Decorah, Iowa— In the clearest expression yet of his 2012 reelection strategy, President Obama said he would send a jobs package to Congress next month, ask lawmakers to pass it, and campaign against them if they refused. Obama made the declaration in a town-hall-style meeting in Iowa on Monday night. He is facing criticism for not advancing a bold strategy to bolster job growth and his reelection prospects. "I'll be putting forward a very specific plan to boost the economy, to create jobs and to control the deficit," Obama said on the first day of his three-day Midwest...

Moody's Analytics on Monday lowered its outlook for growth in the U.S. economy this year and next, saying it sees "significantly weaker" prospects for the economy than just a month ago as the country struggles to avoid another recession. The report ...cites the recent political wrangling over the U.S. debt ceiling and the revived debt crisis in Europe as leading factors in the bleaker economic picture. "The odds of a renewed recession over the next 12 months, already one in three, will increase if stock prices continue to fall

WASHINGTON (Reuters) - Examiners at the Securities and Exchange Commission are checking to ensure that Standard & Poor's followed all of its policies leading up to its downgrade of long-term U.S. debt, according to people familiar with the matter. Compliance, Inspections and Examinations is part of its new authority under the Dodd-Frank Wall Street overhaul law. Among other things, the law gives the SEC the power to continuously monitor credit-rating agencies and conduct annual inspections at each firm.

chicagotribune.com Generation Vexed: Young Americans rein in their dreams Amid so much economic uncertainty, many are rethinking career plans, putting off marriage and avoiding the stock market like the plague. By Tiffany Hsu and Shan Li August 14, 2011 Alicia Thomas, 20, had it all planned out: career at a nonprofit, married by 24, mortgage by 26. Then financial markets went on a wild roller-coaster ride, portending that high unemployment and the stalled economy won't be rebounding any time soon. "I don't want to invest in something I can't afford, given the economy breaking down," said Thomas, who is majoring...

Chicago, August 11, 2011 – This week U.S. Senator Dick Durbin held a press conference with members of the mainstream media to talk about the downgrade crisis. But the Senator’s scripted storyline veered off-course when a conservative reporter – me – showed up to ask an embarrassing question. Namely, “Senator, you’ve blamed the tea party…but do you bear any responsibility for this downgrade crisis?” What, you didn’t hear about this incident in the media? For those of you that need more proof that journalism is dead, read on. … I went to Durbin’s press conference to set the record straight....

Some Democratic members of the Joint Select Committee on Deficit Reduction, tasked with identifying $1.5 trillion in spending cuts, have become the subject of criticism, but their appointments were only finalized Thursday. Sen. Patty Murray of Washington, and Reps. James Clyburn of South Carolina and Xavier Becerra of California are already being targeted for circumstances that could compromise their abilities to negotiate. Becerra, for example, wasted no time before using his appointment as a fundraising tool for his own campaign.

Rep. Xavier Becerra — or, to be more precise, lobbyists working on his behalf — wasted no time Thursday capitalizing on the California congressman’s appointment to the congressional super committee. A little over two hours after Becerra was named to the powerful panel, Investment Company Institute’s Jim Hart sent out an email encouraging attendance for the trade group’s upcoming $1,500 per person fundraiser based on Becerra’s new found status as one of the elite 12. “We will host an event for Congressman Xavier Becerra, not only Vice Chairman of the Democratic Caucus but also who has just been named to...

WASHINGTON, Aug 11 (Reuters) - Here is a look at some of the top donors to election campaigns for the 12 members of the U.S. Congress named to a deficit-fighting "super committee." Known as the Joint Select Committee on Deficit Reduction, the panel is expected to be the most heavily lobbied body in Washington ahead of its Nov. 23 deadline for making recommendations on $1.5 trillion in additional budget savings. Unless specified, donations below combine members' campaign committees and leadership PACs (political action committees). Data is from www.opensecrets.org. SENATE DEMOCRATS Patty Murray of Washington state * Software giant Microsoft Corp...

So this is a taste of what it will be like when the American superpower starts shrinking. Enjoying it yet? After the humiliation of the United States losing its AAA credit rating; after watching the American stock market descend into chaos; after living for two years in a $15 trillion economy unable to grow beyond 2%, with unemployment rates rarely experienced in the U.S., Americans have their first whiff of inhabiting an empire in decline.

Key Republican on New Deficit Panel, Rep. Dave Camp, Won't Rule Out Tax Increases CNBC.com breaking headline

The only way President Barack Obama can solve the nation’s economic woes is to adopt “common-sense” Reaganomics, the policy’s architect Arthur Laffer claims in an exclusive Newsmax.TV interview. Laffer said the White House called him in the spring and asked him to speak to Obama’s former Council of Economic Advisors’ chairman Austen Goolsbee – and he had told him exactly the same thing. “Reaganomics would fix any economy that’s in the doldrums,” Laffer said. “It’s not a magic sauce, it’s common sense. “You’ve got to get rid of all federal taxes in the extreme and replace them with a low-rate...

Not surprisingly, the financial jihadists are promoting Shariah as the solution to America’s debt problems. We’ve seen this before. Back in 2008, in the wake of the subprime mortgage debacle and near-financial meltdown, the financial jihadists insisted that Shariah-compliant finance would have avoided the whole mess. Despite all this, we all know that unfortunately, the financial jihadists have plenty of useful idiots at their disposal in the Western financial services industry and the Western news media...

NEW YORK (CNNMoney) -- U.S. stocks fell sharply in early trading Wednesday, following the previous session's huge rally, as fears about Europe's ongoing debt crisis resurfaced. The Dow Jones industrial average (INDU) dropped 325 points, or 2.9%. The index fell as much as 446 points, which exceeded the gain in Tuesday's massive advance. [SNIP] On Wednesday, shares of French bank Societe Generale, or SocGen, tumbled almost 20% on the Paris stock exchange amid speculation that France may be first to face a rating cut. [SNIP] The major indexes have been swinging between massive gains and losses during trading, and ending...

WASHINGTON (AP) -- Senate Majority Leader Harry Reid announced Tuesday he's naming Sen. Patty Murray to co-chair a powerful "super committee" charged with finding more than $1 trillion in deficit cuts this fall. Murray will be joined by Sens. John Kerry, D-Mass., and Max Baucus, D-Mont., on the panel, which was established last week by hard-fought legislation to increase the national debt.

CORRECT: Municipal Bonds Weaken As S&P Announces Widespread Downgrades By Michael Aneiro Of DOW JONES NEWSWIRES NEW YORK (Dow Jones)--The municipal bond market weakened Tuesday after Standard and Poor's downgraded more than 11,000 public finance issues to keep them in line with its newly lowered rating on federal government debt. S&P said it had lowered to double-A plus from triple-A the ratings on certain public finance debt issues linked to the federal government, matching the downgrade it applied to U.S. government debt last Friday. While the number of issues affected is large, it covers less than 1% of the estimated...

Europe may no longer be able to save itself. Too many countries have too much debt. Its economic growth — which helps countries service their debts — is too feeble. And nervous financial markets seem increasingly prone to dump the bonds of vulnerable countries. This is the real risk to the global and U.S. economic recoveries, far overshadowing Standard & Poor's downgrade of U.S. Treasury debt and Monday's sharp stock market decline. Europe represents about one-fifth of the world economy and buys about a quarter of American exports. While Europe's debt crisis was confined to a few small countries, they...

Gallup delivers two blasts at the Obama administration today for its handling of the economy. The first comes in its daily tracking poll, which reacted rather badly to Barack Obama’s speech from the White House yesterday. His approval rating dropped three points to its previous low of 40% after only one cycle of polling. Disapproval rose back to 50%, up two points from the day before. That sharp drop could amplify over the next couple of days, especially considering the beating Obama is taking across the political spectrum for his ill-considered rehash of an address. It’s possible that we will...