From Expansion (google translated)
“After cutting the rating of Baa3 and Spain to threaten to put Spanish debt at the level of junk bond no later than 30 days, has reviewed the notes of all banks. “We have reported a reduction of two or three notches (steps) to almost everyone. Do not look at individual financial statements of each entity. Do not discriminate, “added the sources.
And is that the sector is particularly annoying because [...]
NEW YORK (AP) — Moody’s Investors Service has lowered the ratings of some of the world’s largest banks, including Bank of America, JPMorgan Chase, Citigroup and Goldman Sachs.
The ratings agency said late Thursday that the banks were downgraded because their long-term prospects for profitability and growth are shrinking.
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
Even as Moody is now about a week late on its Spanish bank downgrade where the banks are rated higher than the sovereign (which obviously is kept in check to prevent yields on bonds from soaring even more), here comes the next wholesale bank downgrade:
Moody’s expected to announce ratings downgrade for UK banks this evening - Sky Sources
Exclusive: Big news – I’m told Moody’s will announce downgrades of some of world’s biggest [...]
This, from SocGen’s Michala Marcussen is basically the definition of conventional wisdom in this post-Spain-bailout-environment:
Our strategists expect a sign of relief to shape markets Monday morning in Europe, but fear it could prove short-lived. This would confirm the by now all too well known pattern of denial from policymakers, pressure from markets, a patch from policymakers, relief rally by markets … declaration of the “worst is behind” from policymakers … only to [...]
pain’s credit rating has been downgraded as estimates on the size of the bailout it needs begin to mount up.
Fitch cut its rating on Spanish government debt by three notches to “BBB”, a sign it thinks Spain’s ability to honour its debts has weakened.
Earlier, there was strong demand for Spanish bonds at an auction on Thursday, seen as a key test of the country’s ability to raise funds.
However, it did [...]
Britain’s largest lenders and some of the world’s biggest investment banks are facing a major increase in their funding costs as one of the main credit agencies prepares to cut their ratings.
British banks, including Barclays, HSBC and Royal Bank of Scotland, are this month expected to have their ratings cut by as much as two notches as part of a worldwide review by Moody’s of bank credits.
The cuts will potentially [...]
Following the downgrade of 16 Spanish banks by Moody’s, the focus in the euro crisis is back on the banking sector. Greeks are withdrawing hundreds of millions from their accounts, with reports that the same is happening in Spain. Experts are calling on the European Central Bank to step in and prevent full-scale bank runs.
The final wake-up call came from Moody’s. On Thursday evening, the US rating agency downgraded 16 Spanish banks [...]
Moody’s Investors Service has today downgraded by one to three notches the long-term debt and deposit ratings for 16 Spanish banks and Santander UK PLC, a UK-domiciled subsidiary of Banco Santander (Spain) SA. The rating downgrades primarily reflect the concurrent downgrades of most of these banks’ standalone credit assessments, and in five cases also Moody’s assessment that the Spanish government’s ability to provide support to the banks has reduced.
Moody’s Investors [...]
Out of nowehere, JPM announced 40 minutes ago that it would hold an unscheduled 5pm call to coincide with the release of its 10-Q. Rumors were swirling as to why. The reason is as follows:
JPMORGAN SAYS CIO UNIT HAS SIGNIFICANT MARK-TO-MARKET LOSSES – “Fortress balance sheet” at least until Bruno Iskil gets done with it.
JPMORGAN SAYS LOSSES ARE IN SYNTHETIC CREDIT PORTFOLIO – but, but, net is NEVER, EVER Gross.
JPM WOULD NEED [...]
We haven’t been hearing a lot from Matt Taibbi lately because he’s on deadline.
But he took a break from his furious writing to comment on this week’s bank earnings and the impending Moody’s downgrade of a few of the major Street players — BofA, Morgan Stanley, Goldman and Citi.
We know that earlier this week, Black Rock’s Larry Fink said that if some of these banks were downgraded, his massive asset management firm would have to stop doing business with them [...]
Moody’s, the credit rating agency, has warned that it may cut the credit ratings of 17 banks and financial services firms that it is currently reviewing.
Moody’s said Morgan Stanley, UBS and Credit Suisse could see their credit ratings cut by up to three notches.
It said the banks’ existing credit ratings did not reflect the challenges that they were facing in the market.
Nine of the banks are based in Europe, [...]
“Moody’s believes that the government is likely to continue to provide some level of support to systemically important financial institutions, which continue to incorporate up to three notches of uplift.
However, it is more likely now to allow smaller institutions to fail if they become financially troubled,” Moody’s said in a statement.
In addition, Moody’s downgraded nine Portuguese banks on Friday, citing the increased risk linked to [...]
Moody’s downgrade Greece’s sovereign rating by three notches, to Ca from Caa1, and warned that it is almost inevitable the country will be considered to be in default following last week’s new bailout package
US lawmakers have so far failed to come up with a concrete proposal to raise country’s debt ceiling and to manage US’s soaring debt, raising fears of a sovereign default
CHF and JPY [...]
Budget deficit on track to top $1 trillion
“The federal budget deficit is on pace to break the $1 trillion mark for the third straight year, ratcheting up the pressure on the White House and Congress to reach a deal to rein in spending.
The deficit totaled $971 billion for the first nine months of the budget year, the Treasury Department said Wednesday. Three years ago, that would [...]