S&P Cuts Credit Ratings on Several Large Banks

S&P Cuts Credit Ratings on Several Large Banks

finance.yahoo.com

Standard & Poor's cut its credit ratings on several large banks as part of its review of the way that it calculates the ratings.

The downgrades on Tuesday included five large banks: Bank of America (NYSE: BAC - News), Citigroup (NYSE:C - News), Goldman Sachs (NYSE: GS - News), Morgan Stanley (NYSE: MS - News) and Wells Fargo (NYSE: WFC - News).

S&P said it reviewed its ratings on 37 financial institutions.

The ratings agency will host two teleconferences to discuss its new ratings criteria for banks, which were published on Nov. 9, and the related ratings actions.

(visit the link for the full news article)

So what does this mean by the big boys losing there credit rating??Will they roll out QE3 and fire up the presses.I do know one thing if the stock market does not take a shot tommorow i call B S .

Also if we are supposed to be in a recovery then why have these major banks lose there credit rating something is amiss here and its rotten

finance.yahoo.com
(visit the link for the full news article)

its looking more and more like banks will be prosicuted for fraud and insider trading,
it looking more and more like the ratings agencies can smell the banks losing hold on congress

just opinion no fact to back up my opinion


xploder

What this means is that any increased costs, or higher interest rates, will be passed along to their customers. But that would be a bad idea considering the blowback we experienced over the $5 BOA fee.

This is not good for economy speculation and I agree....if the market doesn't burp over this, I would be calling shenanigans!

reply to post by alchemist2012

Also if we are supposed to be in a recovery then why have these major banks lose there credit rating something is amiss here and its rotten

There never was a recovery.

And you're right, the situation is quite rotten. I think far too many people still have the proverbial wool over their eyes because they are unable to accept that our country is headed down the wrong path.

Just read this on BBC News

bbc news

Check out whats at the bottom....

"The key factor is that they are largely government owned, that means the risk to shareholders of these banks is quite low," Stephen Joske of the Economist Intelligence Unit in Beijing told the BBC. Mr Joske added that the Chinese government's was in a strong financial position to help its banks, should it need to step in. "If there were to be a run on domestic banks, the authorities have plenty of resources to bail them out," he said.

First i thought he was reffering to the Chinese banks, but they where fine. Looks like they are more than conferable to laugh in our faces now and publicly laugh about the possibility of not getting another bail out.

reply to post by Trolloks
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The the brown stuff is truly heading towards the fan it seems