Thursday, June 21, 2012

Banks: Soap on a Rope

The rating agencies have been downgrading world banks at an alarming rate!  Gee, how did that happen?  I mean really did they think business as usual and I don't what to hear them cry!

Moody's ratings agency has downgraded the credit ratings of eight top Greek banks - including the largest lender National Bank of Greece.

It said the cuts were because of the banks' holdings of Greek government bonds which are looking increasingly risky. Moody's also cited declining bank deposits and Greece's struggling domestic economy which contracted 7.3 percent year-on-year in the second quarter of 2011, as well as unemployment over 16 percent.


French banks

Sept. 12/2011 - Growing fears of a Greek default send a hurricane through French banks and hit the euro as investor confidence in the euro zone's ability to deal with the debt crisis fades. Sonia Legg report:

Dec.09 - Moody's has downgraded the debt of France's three largest banks, citing deteriorating liquidity. Sonia Legg reports:


Paul Krugman

May 17, 2012

Nobel Prize-winning economist Paul Krugman, warns the current bank run in Greece could spiral into the end of the Eurozone. "It is really quite shocking," Krugman says. "I hate to sound apocalyptic." Meanwhile, France's new finance minister has reiterated that the country's new socialist government will not ratify the European Union's fiscal pact calling for greater austerity.


The Mood Hits Home

June 21, 2012

$INDU  12,573.57 -250.82

This went around the world and it's going to touch everyone. Moody's Investors Service lowered the credit ratings of 15 of the world's largest banks late Thursday, including Bank of America, JPMorgan Chase and Goldman Sachs, saying their long-term prospects for profitability and growth are shrinking.


No comments:

Post a Comment