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