– Moody’s may downgrade UBS and Morgan Stanley (Reuters):
Moody’s warned on Thursday it may cut the credit ratings of 17 global and 114 European financial institutions in another sign the impact of the euro zone government debt crisis is spreading throughout the global financial system.
It was reviewing the long-term ratings and standalone credit assessments of a range of banks, Moody’s added. Markets were unaffected by the Moody’s announcement.
“Capital markets firms are confronting evolving challenges, such as more fragile funding conditions, wider credit spreads, increased regulatory burdens and more difficult operating conditions,” the ratings agency said in a statement.
It said among 17 banks and securities firms with global capital markets operations, it might cut the long-term credit rating of UBS, Credit Suisse and Morgan Stanley by as much as three notches following the review. It said the guidance was indicative.
Among the banks that might be downgraded by two notches are Barclays, BNP Paribas, Credit Agricole, Deutsche Bank, HSBC Holdings, and Goldman Sachs.
Bank of America and Nomura were included in those that might be downgraded by one notch.
Why these crooks have any say about what banks or institutions are healthy is beyond me. They ought to be in jail, any credibility on their end ended with the 2008-09 collapse under their AAA rated investments. But, no consequences, no investigations, no punishments, and they all still have their jobs….unlike millions of Americans.
Once it became apparent to nations around the world the US would do nothing to fix our financial system or punish the people who destroyed the global economy in the worst collapse in modern history, investors started leaving this nation in droves. They moved their money to emerging economies like Brazil and Vietnam.
Over a year ago, China and Russia established a trade agreement using their own currencies, leaving the US dollar out. China went on to establish similiar agreements with Turkey and other South American nations. With the nonsensical sanctions the US insists putting on Iran, India and Japan are now joining with them to trade with Iran leaving the US dollar out. All of these nations value Iran as a rich and necessary trading partner.
Our days as the holder of the world standard currency is disappearing quickly. I heard an economist say on Bloomberg this morning that he had calculated 2015 as the end date, but it is happening as I write this.
This is a huge story, being totally ignored by MSM….nothing new in that.
While this is going on, who gives a damn what the rating companies have to say? If anything had been done to repair the problems that caused the collapse, we might have held on longer. Unfortunately, the people in power don’t seem to know or care.
Thanks, you always cover stuff not readily available elsewhere.