Moody's Downgrades Global Banks

[pmbug]

Ratings agency Moody's downgraded the long-term credit ratings of 15 major U.S., Canadian, and European banks today after markets in New York closed.

Of the 15 firms downgraded this afternoon, none were hit more than Moody's originally said was possible when it placed them on review in February.

The action will likely force many of the banks targeted post additional collateral against trades held on their books.

Below, a summary of the major ratings action taken.

Cut One Notch:

• HSBC downgraded to Aa3 from Aa2
• Lloyds TSB downgraded to A2 from A1
• RBS downgraded to Baa1 from A3
• Societe Generale downgraded to A2 from A1

Cut Two Notches:

• Bank of America downgraded to Baa2 from Baa1
• BNP Paribas downgraded to A2 from Aa3
• Barclays downgraded to A3 from A1
• Citigroup downgraded to Baa2 from A3
• Credit Agricole downgraded to to A2 from Aa3
• Goldman Sachs downgraded to A3 from A1
• JP Morgan Chase downgraded to A2 from Aa3
• Morgan Stanley downgraded to Baa1 from A2
• RBC downgraded to Aa3 from Aa1
• UBS downgraded to A2 from Aa3

Cut Three Notches:

• Credit Suisse downgraded to (P)A2 from (P)Aa2

...

http://www.businessinsider.com/downgrade-watch-five-us-banks-will-be-hit-in-moodys-cuts-2012-6

This is disastrous because of the ramifications worldwide on present outstanding contracts, especially OTC derivatives.

http://www.jsmineset.com/2012/06/21/in-the-news-today-1224/

 

[69mach351]

:wave: <--- my shocked face.

Some of these are lucky that they are still rated as high as they are. Banks are SUPPOSED to be a very safe bet...one thing you can always count on. Some would rather run them like a casino...which as recent history shows, does not work.

 

[bushi]

...and yet, PMs are down :rotflmbo:

...how truly barbaric relic they are - nobody wants them, even in the face of troubles brewing... Yet, some say, they are in a "bubble"! What a farce... One thing is sure, the farce one day ends. I hope I will have one nice size stack by then!

 

[DSAbug]

Sentiment in the financial sector is holding up REALLY high at around 61% bullish. It was at 78%. Meanwhile CS took out it's 08 lows..

Meanwhile the most recent gold sentiment readings (from monday) only had 16% bullish...

The fact they are bouncing the market while smacking the miners is just pathetic.

 

[DoChenRollingBearing]

I think that we can learn from what is happening over in Europe. We hear that Greeks for months now have been doing a quiet run on their banks. And then getting their own loot out of Greece. I would too!

This has the ripe smell of contagion about it. I read or heard somewhere (recently) that Credit Agricole of France is about to tip over. If so, then I would advise getting MUCHO DINERO out of your bank...

Gold >> FIAT$ >> electrons at the bank

 

[ancona]

Eventually, the USA will do as Europe is preparing to do and rate their own banks. The ratings grorup will be the bankers representatives of course, with one opr two raters from each of the TPTF's to form the committee. We will be pleased to find out that the real ratings agencies were full of shit all along, and that everything really is coming up roses.

Nothing to see here.......move along now........circus tickets to the right........bread line to the left...............FEMA bus to the luxury holiday capmsite........ummmmm.....straight ahead.

 

[benjamen]

I have thought that the stock market was in for another drop for various reasons including these ratings drops. Interestingly, Goldman Sachs has been telling it's clients to short the S&P 500!

http://finance.yahoo.com/news/goldman-analysts-bet-market-keep-191239829.html

 

[pmbug]

If Goldman is telling clients to short, there is a good chance that they themselves are buying. Expect QE# to airlift them to profits.

 

[bushi]

If Goldman is telling clients to short, there is a good chance that they themselves are buying. Expect QE# to airlift them to profits.

...yeah, it looks like like a given now... Besides, what else could be done, other than money printing? It is not a question IF, only WHEN and how much. Though GS seems to be very reliable contrary indicator recently.