Banks being downgraded tonight

[munky]

sidicks said:

FourWheelDrift said:

It's not just ours and our news people are listing different banks, Sky and The Telegraph say RBS, Barclays and HSBC while the Daily Mail says RBS, Lloyds and Barclays. Others listed in the review as expecting a downgrade are the Royal Bank of Canada, Credit Suisse, Goldman Sachs, Deutsche Bank, Macquarie, BNP Paribas, Credit Agricole, UBS, Morgan Stanley, Citigroup, Societe Generale, Bank of America and Nomura.

This isn't really news - Some months ago Moody's forewarned about likely downgrades in their upcoming review of banks...

Exactly - and two of the above were already downgraded in March, in the same review round, i.e. not downgraded last night.

Even more to the point, ratings agencies are always behind the (credit) curve. Credit markets have taken the news positively - Morgan Stanley's CDS price (i.e. cost of insuring against a default) actually fell 20bp today, and shares were up last night after the announcement. In other words, the market already knew all this, Moody's are playing catch up from a long way behind.. so much so, that they are still cutting ratings even as the financial strength of the banks is on the up again.

[anonymous-user]

The ratings agencies missed the real banking crisis. So are now arse covering. I doubt if anyone takes a blind bit of notice of anything they say now..

[anonymous-user]

Jimboka said:

The ratings agencies missed the real banking crisis. So are now arse covering. I doubt if anyone takes a blind bit of notice of anything they say now..

Agreed. They've pretty much downgraded everything and anything now.