Moody’s downgrade hits 15 top banks

[ShcShc11 0]

Quote

Fifteen of the biggest global banks were downgraded on Thursday by Moody’s Investors Service, adding to pressure on their borrowing costs and questions over their business models.
Morgan Stanley, the focus of investor anxieties in the weeks leading up to the announcement, escaped the three-notch downgrade that the rating agency had threatened during its review of large trading banks. Its long-term credit rating was cut from A2 to Baa1, three notches above “junk”.
Stock markets fell in anticipation of the downgrades, which came after US markets closed, adding to fears over the global economy. Shares in Bank of America, Citigroup and Royal Bank of Scotland fell by more than 3 per cent by the closing bell. The S&P 500 closed down 2.2 per cent at 1,325.51.

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Credit Suisse was the only bank to be downgraded by three notches. Morgan Stanley, UBS, Barclays, BNP Paribas, Citigroup, Crédit Agricole, Deutsche Bank, Goldman Sachs, JPMorgan Chase and Royal Bank of Canada received double-notch downgrades. Bank of America, HSBC, Royal Bank of Scotland and Société Générale received single-notch downgrades. In a separate action outside the review, Lloyds Banking Group had its rating cut by one notch.

http://www.ft.com/intl/cms/s/0/18e9a8f4-bbbc-11e1-9aff-00144feabdc0.html#axzz1yfNPhLrZ

I hope none of us has forgotten how close we were to financial meltdown in Oct 2008-March 2009.

Cheers!
Shc

[kallend 2,151]

But their CEO's are paid $millions - how can they be wrong?

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The only sure way to survive a canopy collision is not to have one.