Credit rating agency Moody's downgrades 15 major global banks, including Bank of America and JPMorga

[applegrove]

Source: CNN email

Credit rating agency Moody's downgrades 15 major global banks, including Bank of America and JPMorgan Chase.

Read more: Link to source

[jeff47]

1. Clearly, this shows that austerity is working.

[nanabugg]

29. And even more, it shows that Obama caused these downgrades. Nt

[Hassin Bin Sober]

2. What? The kick-backs didn't come through?

[dixiegrrrrl]

9. Nailed it.

How anyone could take the raings agencies seriously after the revalations of "pay to play" is beyond me.

[aquart]

3. How low did they go?

Please tell me this will hurt them.

[shcrane71]

4. How is this going to hurt them?

Don't the banks hold all the cards? Who cares what the credit rating agencies say.

[jeff47]

7. They borrow money too. Lower rating means theoretically higher borrowing costs

However, it's much more important as an indicator that current policies are moronic.

[dixiegrrrrl]

10. They "borrow" from the Fed at zero %....

hard to see how that could hurt borrowing costs.
It DOES throw a shadow on any debt they try to sell, tho.

[shcrane71]

17. +1

[slackmaster]

24. They'll just jack up the rates on outstanding credit card balances, and do other dirty tricks

Such as changing statement cycle dates in order to trick people who make automatic payments into going delinquent, so their rates can be pushed up even higher.

[jeff47]

26. Yes, but the important part is that it indicates austerity failed. Again. (nt)

[slackmaster]

27. There's nothing austere about government forking over hundreds of billions of dollars in cheap loans

To prop up companies that should by all rights have failed long ago because of their own poor management.

[jeff47]

28. It's austerity for most, even if the undeserving get cash (nt)

[CJCRANE]

5. Who put them in charge?

[OKNancy]

6. Link to cbs

http://www.cbsnews.com/8301-505123_162-57458237/moodys-downgrades-credit-of-5-big-u.s-banks/

MoneyWatch) Moody's Investors Service (MCO) has cut the debt ratings on five large U.S. banks, along that of a number of other global financial institutions.

Morgan Stanley (MS) received a two-notch cut in its senior long-term debt rating, less than some market observers had expected. The credit rating agency, which announced the move after the close of trading Wednesday, also lowered its rating for Bank of America (BAC), Citigroup (C), Goldman Sachs (GS), and JPMorgan Chase (JPM).

Moody's cited the banks' shrinking growth and dimming profit forecast in explaining the downgrade. The ratings agency also highlighted the firms' exposure to the capital markets at a time of significant market volatility.

[rhett o rick]

8. Moody has no creditablity in my book. They are just part of the sham. nm

[louis-t]

13. Right, they gave bundled sub-prime mortgages a AAA rating.

We know how that turned out.

[rhett o rick]

14. We must break up the banks. nm

[cstanleytech]

16. Agree but getting it done is going to be a pita as

the banks have alot of power right now over the government.

[sarcasmo]

11. Nice! Nationalism them would be much better.

[Major Hogwash]

12. Help, somebody has to bail us out . . . again!! And again!!

I think the Fed needs to be strengthened.

[egbertowillies]

15. Don't believe the crap.

This is a fraud. First of all it is Moody who gave triple A rating to the financial instruments comprised of a bundle of split up shady debt. Why should we listen.

The reality is I believe this is collusion between the agency and banks to increase consumer interest rates so they make more money and claim its the rating. That way they hide from the political fall out. Remember, they borrow from each other or from the Feds. This is also another way to force feds to keep their rates down. It is a fraud.

[Pale Blue Dot]

18. Here's what bothers me reading the responses in this thread.

Posters are absolutely correct in mistrusting the rating agencies, for the reasons cited above. However, posters aren't taking the next step; rating agencies have a confirmed history of OVER rating, especially for the big banks and investment firms. A logical person would assume that whatever rating the firms give, the reality is much, much worse.

If the ratings agencies are lowering their ratings, this can only mean one thing: the ratings should actually be EVEN LOWER.

[applegrove]

19. I think perhaps the ratings agency got so blamed for the 2008 financial bust that they

are being more cautious now. I would guess they have learnt their lesson. Afterall if they get it wrong again then what it the point of them even existing?

[Pale Blue Dot]

20. I'm sorry, but the evidence just doesn't support that.

The Moody's recommendations were supposed to be out at 4 o'clock, but were delayed due to "negotiations" with Morgan Stanley.

It is worse, much worse, then what they are saying.

http://www.zerohedge.com/news/here-we-go-moodys-comes-out-morgan-stanley-cut-only-2-notches

[byeya]

25. I don't believe Moodys is an "agecy", it's a private company

and someone pays them to come up with a rating.
They've been wrong as much as they've been correct the past
number of years and I don't put much faith in whatever Moodys says.

[Festivito]

21. Derivative market starting to loom?

When WE THE WORLD create 40 times our needed money supply in negotiable paper wealth based on borrowing, who would think that something could go wrong.

[Festivito]

22. Some links for the OP.

http://www.bizjournals.com/jacksonville/news/2012/06/22/moodys-downgrades-credit-ratings-of.html

http://www.reuters.com/article/2012/06/22/us-financial-moodys-downgrades-idUSBRE85K1QL20120622

http://www.cnbc.com/id/47914484

[Odin2005]

23. 5 years too late.