View Full Version : Major banks downgraded by Moody's
Not to worry, futures are up for most if not all the downgraded banks................I suppose any rating above "junk" is a winner for them.
Couldn't we call them "Large" banks instead of "Major" ?
Moody's is recognizing what the market priced in back in 2008. Nothing new here and it is not effecting the markets. The is more a statement about Moody's incompetence than it is any change in the banks status.
It doesn't do anything but that's what we need to see.
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Sadly, these 'downgrades' were a farce. Check out Morgan's sweatheart deal with that saved them from a 2+ downgrade.
"..and two notches of uplift owing to Moody's belief that there is a high likelihood that Morgan Stanley, as a systemically important financial institution, would receive support from the US government in the event such support was required to prevent a default."
Indeed. Substitute "generations of U.S. tax chattel" for "US government" anf you're dead on.
BTW, shares rose on the news. Already baked into the cake. Just not your cake.
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