Moody’s

Big Bank Downgrade By Moody’s Imminent

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– Big Bank Downgrade By Moody’s Imminent (ZeroHedge, June 21, 2012):

Even as Moody is now about a week late on its Spanish bank downgrade where the banks are rated higher than the sovereign (which obviously is kept in check to prevent yields on bonds from soaring even more), here comes the next wholesale bank downgrade:

  • Moody’s expected to announce ratings downgrade for UK banks this evening – Sky Sources
  • Exclusive: Big news – I’m told Moody’s will announce downgrades of some of world’s biggest banks, incl in UK, after US mkts close tonight. – Sky’s Mark Kleinman

Looks like that fabricated 2 notch Margin Stanley downgrade (because 3 notches just won’t do – those 4 months of Gorman-led “negotiations” made that painfully clear) is about to strike. The real question is: What Would Egan Who Do?

From Sky:

Some of Britain’s biggest banks are poised to have their credit ratings downgraded by Moody’s as soon as tonight as part of a wider reassessment of the health of the global banking industry, I can reveal.

Moody’s is expected to outline its verdicts about the creditworthiness of banks including Barclays, HSBC, JP Morgan and Royal Bank of Scotland.

Read moreBig Bank Downgrade By Moody’s Imminent

Spain Loses Final A Rating With Moodys Downgrade To Baa3, May Downgrade Further (Full Text)

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Don’t miss:

– Nigel Farage: ‘Once Greece Leaves The ECB Is Bust’ – ‘The Euro Titanic Has Now Hit The Iceberg And Sadly There Simply Aren’t Enough Lifeboats’ (Video):

– Spain Loses Final A Rating With Moodys Downgrade To Baa3, May Downgrade Further – Full Text (ZeroHedge, June 13, 2012):

And so the final Spanish A rating tumbles. Why is this kinda, sorta a big deal? Because as we explained in the end of April, “If all agencies downgrade Spain to BBB+ or below, the ECB could increase haircuts by 5% on SPGBs. The key aspect in terms of the Spanish downgrade(s) is the ECB’s LTRO. If all three rating agencies move Spain to BBB+ or below then under the ECB’s current framework it moves into the Step 3 collateral bucket which requires an additional 5% haircut across the maturities. In classifying its risk management buckets, the ECB uses the highest of the ratings to determine an asset’s position (unlike the sovereign benchmark indices which use the lowest rating, in general). Fitch and Moodys currently rate Spain at A and A3 respectively, with both having a negative outlook in place leaving only a small downgrade margin before Spain migrates to the lower ECB bucket.”

And now the collateral squeeze is on, unless of course the ECB changes the reules one more time.

Read moreSpain Loses Final A Rating With Moodys Downgrade To Baa3, May Downgrade Further (Full Text)

Moody’s Warns Of Spanish Downgrade, Threatens AAA-Countries In Case Of Grexit

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– Friday Dump Complete: Moody’s Warns Of Spanish Downgrade, Threatens AAA-Countries In Case Of Grexit (ZeroHedge, June 8, 2012):

First we got Spain miraculously announcing late at night local time, but certainly after close of market US time, that the bailout so many algorithms had taken for granted in ramping stocks into the close may not be coming, because, picture this, Germany may have conditions when bailing the broke country’s banks out, and Spain is just not cool with that, and now, after the close of FX and futures trading, we get Moody’s giving us the warning the after Egan-Jones, S&P, and Fitch, it is now its turn to cut the Spanish A3 rating.”As Spain moves closer to the need for direct external support from its European partners, the increased risk to the country’s creditors may prompt further rating actions. The official estimates of recapitalising Spain’s banking system have risen significantly and the country’s indirect reliance on European Central Bank (ECB) funding via its banks has been growing. Moody’s is assessing the implications of these increased pressures and will take any rating actions necessary to reflect the risk to Spanish government creditors. Moody’s rating on Spain is currently A3 with a negative outlook.” Moody’s also warns, what everyone has known for about 2 years now, that Italy could be next: “However, Spain’s banking problem is largely specific to the country and is not likely to be a major source of contagion to other euro area countries, except for Italy, which likewise has a growing funding reliance on the ECB through its banks.” Of course none of this is unexpected. What will be, however, to the market, is when all 3 rating agencies have Spain at BBB+ or below, which as ZH first pointed out at the end of April will result in a 5% increase in repo haircuts on Spanish Government Bonds, resulting in yet another epic collateral squeeze for the country which already is forced to pledge Spiderman towels to the central bank.

From Moody’s

Moody’s: Developments in Spain, Greece may prompt euro area sovereign rating downgrades

Read moreMoody’s Warns Of Spanish Downgrade, Threatens AAA-Countries In Case Of Grexit

Moody’s Downgrades Six German Bank Groups, And Their Subsidiaries, By Up To Three Notches

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– Moody’s Downgrades Six German Bank Groups, And Their Subsidiaries, By Up To Three Notches (ZeroHedge, June 5, 2012):

First Moody’s cut the most prominent Austrian banks, and now it is Germany’s turn, if not that of the most undercapitalized German bank yet: “The ongoing rating review for Deutsche Bank AG and its subsidiaries will be concluded together with the reviews for other global firms with large capital markets operations.“

The full downgrade Matrix:

From Moody’s

Moody’s takes multiple actions on German banks’ ratings; most outlooks now stable

Frankfurt am Main, June 06, 2012 — Moody’s Investors Service has today taken various rating actions on seven German banks and their subsidiaries, as well as one German subsidiary of a foreign group. As a result, the long-term debt and deposit ratings for six groups and one German subsidiary of a foreign group have declined by one notch, while the ratings for one group were confirmed. Moody’s also downgraded the long-term debt and deposit ratings for several subsidiaries of these groups, by up to three notches. At the same time, the short-term ratings for three groups as well as one German subsidiary of a foreign group have been downgraded by one notch, triggered by the long-term rating downgrades.

Read moreMoody’s Downgrades Six German Bank Groups, And Their Subsidiaries, By Up To Three Notches

Moody’s Downgrades Credit Rating Of 9 Danish Banks

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– Moody’s downgrades nine Danish banks (AFP, May 31, 2012):

MOODY’S has downgraded the credit rating of nine Danish banks, citing the impact of the rolling eurozone crisis on bank loan quality and on their fund-raising ability.

The nine, along with the Finnish subsidiary of one of the banks, saw their ratings cut one to three notches, with one of them, DLR Kredit, pushed three steps down into the junk-bond realm at Ba1.

“Danish financial institutions face sluggish domestic economic growth, weakening real estate prices and higher levels of unemployment, as well as the risk of external shocks from the ongoing euro area debt crisis,” Moody’s said.

“Asset quality is deteriorating, and these pressures are expected to continue.”

Read moreMoody’s Downgrades Credit Rating Of 9 Danish Banks

Postcards From Sweden

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– Postcards From Sweden (ZeroHedge, May 26, 2012):

There are those who claim that rating agencies are utterly irrelevant, incompetent, behind the curve and merely echo chambers of popular opinion. They are 100% right. There is, however, one critical function that rating agencies execute – they put into words what everyone else knows is fact, but are simply unwilling to recognize due to the systemic implications of admitting yet another lie: subprime, failed banks, Europe, etc. By the time a rating agency has finally opined on something in a way indicative of the truth, it is too late to stick one’s head in the sand. Yesterday precisely this happened once more – from the WSJ: “Credit rating agency Moody’s Investor Service Friday downgraded a range of major banks in Sweden and Norway, citing contagion risks from the European debt crisis. But observers said the cuts were less sweeping than feared and reflect the strength of Nordic banks versus their European peers, which risk sharper downgrades as Moody’s continues a Europe-wide review that started earlier this month with cuts to 26 Italian lenders. In February Moody’s placed various ratings of 114 financial institutions in 16 European countries on review for possible downgrades, highlighting the banks’ vulnerability to the euro zone sovereign debt crisis. “We read this as a sign of the strength in relative terms of Swedish banks which are coping well,” Swedish Central Bank Deputy Governor Per Jansson said. Moody’s Friday downgraded the ratings for Sweden’s Nordea Bank AB (NDA.SK) and Handelsbanken AB (SHB-B.SK) by one notch to Aa3, and for specialist agricultural lender Landshypotek AB by two notches to Baa2.” Furthermore, as Zero Hedge reminded two days ago, when it comes to deposit backing, European banks are so levered from a loan-to-deposit ratio, that even the tiniest risk of deposit flight would result in immediate undecapitalization, and further outflows. Oddly, nowehere is this more evident than in various Scandivanian banks such as Danska, Handelsbanken (SHB), Swedbank, and Nordea, two of which were just downgraded by Moody’s.

Visually this can be seen here.

Of course, to readers of Zero Hedge this is not news. Back in March this particular fringe blog explicitly warned, while everyone else kept silent that…

With banks such as Danske, SHB, Swebank, DnB, and Nordea literally at 200% Loan-to-Deposits, but most other European banks too, even the tiniest outflow in deposit cash (ala what is happening in the PIIGS) will send the system into yet another liquidity spasm. Only this time, since what little unencumbered assets remaining have already been pledged to the ECB, there will be no quick LTRO collateral-type fix this time.

Sadly, many preferred to continue sticking their heads in the sand. Until Moody’s announcement made continuation of that avoidance behavior impossible. Which is why we present the following postcard we just got from Sweden. We can only hope this is a very isolated incident of people enjoying to wait in line for a few pieces of paper, completely devoid of any contextual reference. That, or they are all suddenly applying for a mortgage, or in the best case, merely enjoying the wonderful weather, just incidentally next to a branch of one of Sweden’s largest banks.

Finally, for those who think we are picking on Sweden, here again, is the simple math presented visually two short days ago.

Read morePostcards From Sweden

Moody’s Downgrades 16 Spanish Banks

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– Moody’s Downgrades 16 Spanish Banks, As Expected (ZeroHedge, May 16, 2012):

As was leaked earlier today, so it would be:

  • MOODY’S CUTS 16 SPANISH BANKS AND SANTANDER UK PLC
  • MOODY’S CUTS 1 TO 3 LEVELS L-T RATINGS OF 16 SPANISH BANKS
  • MOODY’S DOWNGRADES SPANISH BANKS; RATINGS CARRY NEGATIVE

In summary, the highest Moodys rating for any Spanish bank as of this point is A3. But luckily the other “rumor” of a bank run at Bankia was completely untrue, at least according to Spanish economic ministry officials, so there is no need to worry: it is all under control. The Banko de Espana said so.

Complete summary downgrade grid:

Another way to visualize the bloodbath as Spain no longer has any bank rated A2 or higher:

Full report below:

Read moreMoody’s Downgrades 16 Spanish Banks

Moody’s Downgrades 26 Italian Banks, Outlook Negative

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– Moody’s downgrades Italian banks, outlook negative (Reuters, May 15, 2012):

Moody’s Investors Service downgraded the long-term debt and deposit ratings for 26 Italian banks on Monday, citing the country’s recession and rising bad debt levels.

The banks were all downgraded by at least one notch, and for some, by as many as four notches, Moody’s said, adding all of the banks affected have a negative outlook.

The moves marked another blow for Italy’s top five banks after they were asked to find some 15 billion euros by June to meet tougher capital requirements set by the European Banking Authority due to vast holdings of domestic government bonds.

Economic recession in Italy has worsened credit quality as banks come under pressure from the government to put cheap funding from the European Central Bank to work in the real economy.

“The ratings for Italian banks are now amongst the lowest within advanced European countries, reflecting these banks’ susceptibility to the adverse operating environments in Italy and Europe,” Moody’s said in a statement.

Read moreMoody’s Downgrades 26 Italian Banks, Outlook Negative

The Truth About Egan-Jones

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– The Truth About Egan-Jones (ZeroHedge, April 27, 2012):

… but not from us: after all we are known for being biased, which in the mainstream media parlance means calling it like it is. No – instead we leave it to none other than Bloomberg’s Jonathan Weil who does as good a job of being “biased” as we ever could: “Egan-Jones, which has been in business since 1992, could have continued operating as an independent publisher of ratings and analysis, not subject to government oversight or control. Instead it chose to play within the Big Three’s system, exposing itself to regulation and the whims of the SEC in exchange for the government’s imprimatur. Now it’s paying the price.” And not only that: as the most recent example of Spain just shows, where Egan Jones downgraded Spain 9 days ago and was ignored, but well ahead of everyone else, only to be piggybacked by S&P, and the whole world flipping out, it has become clear: calling out reality, and the fools that populate it, is becoming not only a dangerous game, but increasingly more illegal. Then again – this is not the first time we have seen just this happen in broad daylight, with nobody daring to say anything about it. In fact, this phenomenon tends to be a rather traditional side-effect of every declining superpower. Such as the case is right now…

From BBG’s Jon Weil:

The first time I wrote about Sean Egan and his small, independent credit-research firm, Egan-Jones Ratings Co., was in December 2007 for a column about the bond insurer MBIA Inc. (MBI) And man, did he nail it.

The three big credit raters — Moody’s Investors Service, Standard & Poor’s, and Fitch Ratings — all had AAA ratings on MBIA’s insurance unit, their highest grade. Egan said it deserved much lower. Anyone reading MBIA’s financial reports could see the company was losing money and needed billions of dollars of fresh capital.

By mid-2008, the Big Three had cut their ratings. Once again, Egan, a lonely voice of reason who saw the financial crisis coming, had shown his larger competitors to be incompetent or compromised. It was one of many great calls to come for Egan-Jones. As for MBIA, which had no revenue last quarter, it’s still struggling.

So if you had told me back then that the Securities and Exchange Commission’s enforcement division more than four years later would be accusing Egan, and his firm, of securities-law violations — but not any of the big rating companies — there’s no way I would have believed you. That’s what happened this week, though.

Read moreThe Truth About Egan-Jones

America: A Government Totally Out Of Control (Video)

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Next train ‘Ausschwitz’:

– No.1 Trend Forecaster Gerald Celente: The Entire Financial System Is Collapsing! – This Is FASCISM! (Video, March 26, 2012 )

Flashback:

– Former governor  Jesse Ventura Conspiracy Theory: Police State (And FEMA Concentration Camps) – Full Length Video

The videos down below are a MUST-SEE!

– America: A Government Out Of Control (ZeroHedge, April 8, 2012):

“A government big enough to give you everything you want, is strong enough to take everything you have”
– Thomas Jefferson

Something odd and not quite as planned happened as America grew from its “City on a Hill” origins, on its way to becoming the world’s superpower: government grew. A lot. In fact, the government, which by definition does not create any wealth but merely reallocates it based on the whims of a select few, has transformed from a virtually invisible bystander in the economy, to the largest single employer, and a spending behemoth whose annual cash needs alone are nearly $4 trillion a year, and where tax revenues no longer cover even half the outflows. One can debate why this happened until one is blue in the face: the allures of encroaching central planning, the law of large numbers, and the corollary of corruption, inefficiency and greed, cheap credit, the transition to a welfare nanny state as America’s population grew older, sicker and lazier, you name it. The reality is that the reasons for government’s growth do not matter as much as realizing where we are, and deciding what has to be done: will America’s central planners be afforded ever more power to decide the fates of not only America’s population, but that of the world, or will the people reclaim the ideals that the founders of this once great country had when they set off on an experiment, which is now failing with every passing year?

As the following video created by New America Now, using content by Brandon Smith whose work has been featured extensively on the pages of Zero Hedge, notes, “we tend to view government as an inevitability of life, but the fact is government is not a force of nature. It is an imperfect creation of man and it can be dismantled by man just as easily as it can be established.” Unfortunately, the realization that absolute power corrupts absolutely, and absolute central planning leads to epic catastrophes without fail, seems a long way away: most seem content with their lot in life, with lies that their welfare money is safe, even as the future is plundered with greater fury and aggression every passing year, until one day the ability to transfer wealth (benefiting primarily the uber rich, to the detriment of the middle class which is pillaged on an hourly basis), from the future to the present is gone, manifesting in either a failed bond auction or hyperinflation. The timing or shape of the transition itself is irrelevant, what is certain is that America is now on collision course with certain collapse unless something changes. And one of the things that has to change for hope in the great American dream to be restored, is the role, composition and motivations of government, all of which have mutated to far beyond what anyone envisioned back in 1776. Because America is now saddled with a Government Out Of Control.

Watch the two clips below to understand just how and why we have gotten to where we are. Also watch it to, as rhetorically asked by the narrator, prompt us to question whether the government we now have is still useful to us and what kind of powers it should be allowed to wield.


YouTube


YouTube

Moody’s: GREECE HAS DEFAULTED: Creditors To Lose Over 70% On The Value Of Their Investment – Here Is Where We Stand

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– Moody’s: Greek sovereign credit rating remains at C (Reuters, Mar 9, 2012):

March 9 – Moody’s Investors Service says that it considers Greece to have defaulted per Moody’s default definitions further to the conclusion of an exchange of EUR177 billion of Greece’s debt that is governed by Greek law for bonds issued by the Greek government, GDP-linked securities, European Financial Stability Facility (EFSF) notes. Foreign-law bonds are eligible for the same offer, and Moody’s expects a similar debt exchange to proceed with these bondholders, as well as the holders of state-owned enterprise debt that has been guaranteed by the state, in the coming weeks. The respective securities will enter our default statistics at the tender expiration date, which is was Thursday 8 March for the Greek law bonds and is currently expected to be 23 March for foreign law bonds. Greece’s government bond rating remains unchanged at C, the lowest rating on Moody’s rating scale.

Moody’s understands that 85.8% of debtholders holding Greek-law bonds issued by the sovereign have agreed to the exchange, with the vast majority of remaining bondholders likely to be drawn in following the exercise of Collective Action Clauses that will be inserted pursuant to a recent Act by the Greek parliament. The terms of the exchange entail a discount – a loss to creditors – of at least 70% on the net present value of existing debt. According to Moody’s definitions, this exchange represents a `distressed exchange’, and therefore a debt default. This is because (i) the exchange amounts to a diminished financial obligation relative to the original obligation, and (ii) the exchange has the effect of allowing Greece to avoid payment default in the future.

– Greece averts immediate default, markets sceptical (Reuters, Mar 9, 2012):

Greece averted the immediate threat of an uncontrolled default on Friday, winning strong acceptance from its private creditors for a bond swap deal which will eat into its mountainous public debt and clear the way for a new bailout.

With euro zone ministers set to approve the 130 billion euro (109 billion pounds) rescue, French President Nicolas Sarkozy declared the Greek problem had been settled – just as Germany said that any impression the crisis was over “would be a big mistake.”

Markets sharply marked down the value of new Greek bonds to be issued to the creditors, reflecting the risk of paralysis after elections expected this spring and doubts about whether Athens can bring its debt to a more manageable level by 2020.

Sarkozy, who is trailing his socialist challenger for the presidency before France’s own elections in April and May, pronounced the Greek deal a major success.

“Today the problem is solved,” he said in the southern French city of Nice. “A page in the financial crisis is turning.”

Euro zone finance ministers held a teleconference call and were expected to declare Athens had met the tough terms of the bailout, its second since 2010, and to authorise the release of funds which the country needs to meet heavy debt repayments later this month and avoid bankruptcy.

On the streets of Athens, some Greeks denounced the deal as a sham that would impose more crippling austerity on a people already enduring pay and pension cuts and soaring unemployment.

German Finance Minister Wolfgang Schaeuble was also in a more sombre mood than Sarkozy, issuing a warning to Athens which has a record of failing to meet its promises of reform and austerity made to international lenders.

“Greece has today got a clear opportunity to recover. But the precondition is that Greece uses this opportunity,” he told a news conference. “It would be a big mistake to give the impression that the crisis has been resolved. They have an opportunity to solve it and they must use it.”

Under the biggest sovereign debt restructuring in history, Greece’s private creditors will swap their old bonds for new ones with a much lower face value, lower interest rates and longer maturities, meaning they will lose about 74 percent on the value of their investments.

“A VERY GOOD DAY”

Data published on Friday underlined the depth of Greece’s problems. It showed the economy shrank 7.5 percent in 2011, marking the fourth successive year of recession.

That was worse even than 1974, when Greece’s military dictatorship collapsed following a confrontation with Turkey over Cyprus and as a leap in oil prices hit economies around the world. That year the Greek economy shrank 6.4 percent.

Nevertheless, Greek Finance Minister Evangelos Venizelos hailed the bond swap, which the European Union and IMF had demanded in return for the new bailout, as marking a long-awaited success for all Greeks enduring a painful recession.

“I hope everyone will realise, sooner or later, that this is the only way to keep the country on its feet and give it the second historic chance that it needs,” Venizelos, who led often ill-tempered negotiations with the EU and IMF, told parliament.

He said the bond deal had cut its debt by 105 billion euros.

– Greece Has Defaulted: Here Is Where We Stand (ZeroHedge, Mar 9, 2012):

After reading this, everyone should have a fairly good grasp of what happened not only today, but ever since the great (and quite endless) European financial crisis took center stage, and what to look forward to next…

From Chindit13

In a nutshell—okay, a coconut shell—this seems to be where we are:

1)  Greece was able to write off 100 billion euros worth of debt in exchange for a 130 billion rescue package of new debt, of which Greece itself will receive 19%, or about 25 billion, so that it can continue to operate as an ongoing concern.  Somehow Greece is in a better position than before, with more debt and less sovereignty and still—by virtue of sharing a common currency—trying to compete toe-to-toe with the likes of Germany and the Netherlands, kind of like being the Yemeni National Basketball team in an Olympic bracket that includes the US, Spain and Germany.  At least a “within the euro” default prevented bank runs in Portugal, Spain, Italy et al.

2)  As a result of the bond haircuts, Greece has many pension plans that can no longer even pretend to be viable, at least according to the original contracted scheme, but pensionholders still working can take heart in the fact that their current wages will be cut, too.

Read moreMoody’s: GREECE HAS DEFAULTED: Creditors To Lose Over 70% On The Value Of Their Investment – Here Is Where We Stand

Moody’s Downgrades Generali, Cuts Megainsurer Allianz Outlook To Negative … A&G’s AIG Moment Is Approaching

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– A&G’s AIG Moment Approaching: Moody’s Downgrades Generali, Cuts Megainsurer Allianz Outlook To Negative (ZeroHedge, Feb. 15, 2012):

Don’t worry though, those who don’t understand jack shit will tell you it is all contained. But please ask them why – and ask them why Lehman wasn’t when everyone said it too was.

Mass Downgrade: Moody’s Cuts Credit Ratings Of Italy, Spain, Portugal, Slovakia, Slovenia And Malta, WARNS UK, France And Austria On AAA-Rating

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– Moody’s warns may cut AAA-rating for UK and France (Reuters, Feb. 14, 2012):

Rating agency Moody’s warned it may cut the triple-A ratings of France, Britain and Austria and it downgraded six other European nations including Italy, Spain and Portugal, citing growing risks from Europe’s debt crisis.

– Moody’s cuts ratings on Italy, Portugal and Spain (Washington Post, Feb. 14, 2012):

NEW YORK — Ratings agency Moody’s Investor Service on Monday downgraded its credit ratings on Italy, Portugal and Spain, while France, Britain and Austria kept their top ratings but had their outlooks dropped to “negative” from “stable.”

Moody’s also cut its ratings on the smaller nations of Slovakia, Slovenia and Malta. All nine countries are members of the European Union.

London, 13 February 2012 — As anticipated in November 2011, Moody’s Investors Service has today adjusted the sovereign debt ratings of selected EU countries in order to reflect their susceptibility to the growing financial and macroeconomic risks emanating from the euro area crisis and how these risks exacerbate the affected countries’ own specific challenges.

– Rating Action: Moody’s adjusts ratings of 9 European sovereigns to capture downside risks (Moody’s, Feb. 13, 2012):

Moody’s actions can be summarised as follows:

– Austria: outlook on Aaa rating changed to negative

– France: outlook on Aaa rating changed to negative

– Italy: downgraded to A3 from A2, negative outlook

– Malta: downgraded to A3 from A2, negative outlook

– Portugal: downgraded to Ba3 from Ba2, negative outlook

– Slovakia: downgraded to A2 from A1, negative outlook

– Slovenia: downgraded to A2 from A1, negative outlook

– Spain: downgraded to A3 from A1, negative outlook

– United Kingdom: outlook on Aaa rating changed to negative

Moody’s Downgrades French Banks (Telegraph) – Eurozone Banking System On The Edge Of Collapse (Telegraph) – EU Summit: This Emergency Plan Is Great News – If You’re A Bank (Guardian)

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Flashback ( on ECB’s Mario Draghi):

– ECB’s Mario Draghi: We Need Fiscal Union (= EUSSR), Not Bank Intervention

– Former Goldman Sachs Managing Director Mario Draghi Appointed European Central Bank President!

– Mario Draghi (Wikipedia):

Draghi was then vice chairman and managing director of Goldman Sachs International and a member of the firm-wide management committee (2002–2005). A controversy existed on his duties while employed at Goldman Sachs. Pascal Canfin (MEP) asserted Draghi was involved in swaps for European governments, namely Greece, trying to disguise their countries’ economic status.

 

– French banks downgraded by Moody’s (Telegraph, Dec. 9, 2011):

Moody’s has downgraded BNP Paribas, Societe Generale, and Credit Agricole warning their creditworthiness is being damaged by the fragile operating environment for European banks.

The agency cut its ratings on the long-term debt of BNP and Credit Agicole by one notch to Aa3, concluding reviews that began in June and were continued in September. Societe Generale’s long-term debt was cut by one notch to A1.

The downgrades were driven by the increasing difficulties the banks were having in raising funding and the worsening economic outlook, Moody’s said.

The news comes a day after the European Banking Authority (EBA), warned the region’s banks must find €114.7bn of extra capital in order to withstand the euro zone debt crisis and restore investor confidence.

Moody’s said its ratings did take into account the fact that all three French banks were likely to benefit from state support if the crisis deepened.

“Liquidity and funding conditions have deteriorated significantly,” said Moody’s, adding that the banks have historically relied on wholesale funding markets.

“The probability that the will face further funding pressures has risen in line with the worsening European debt crisis.”

– Eurozone banking system on the edge of collapse (Telegraph, Dec. 9, 2011):

Senior analysts and traders warned of impending bank failures as a summit intended to solve the European crisis failed to deliver a solution that eased concerns over bank funding.

The European Central Bank admitted it had held meetings about providing emergency funding to the region’s struggling banks, however City figures said a “collateral crunch” was looming.

“If anyone thinks things are getting better then they simply don’t understand how severe the problems are. I think a major bank could fail within weeks,” said one London-based executive at a major global bank.

Many banks, including some French, Italian and Spanish lenders, have already run out of many of the acceptable forms of collateral such as US Treasuries and other liquid securities used to finance short-term loans and have been forced to resort to lending out their gold reserves to maintain access to dollar funding.

“The system is creaking. There is a large amount of stress,” said Anthony Peters, a strategist at Swissinvest, pointing to soaring interbank lending rates.

Read moreMoody’s Downgrades French Banks (Telegraph) – Eurozone Banking System On The Edge Of Collapse (Telegraph) – EU Summit: This Emergency Plan Is Great News – If You’re A Bank (Guardian)

Dr. Webster Tarpley: The NATO-CIA Destabilization Of Syria Is Under Way! (Video)

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See also:

– Bomb Voyage: 600 Libyans ‘Already Fighting In Syria’ (RT)

– US Carrier Strike Force Enters Syrian Waters

– Russia Warships To Enter Syria Waters To Stop NATO


YouTube Added: 29.11.2011


YouTube Added: 29.11.2011

Description:

On the Tuesday, November 29 edition of the Alex Jones Show, Alex talks about moves by the globalists to attack Syria as France trains “rebels” in Turkey and the Russians deny they have dispatched war ships to guard their interests in the Middle Eastern country. Historian and author Webster Tarpley talks with Alex about Syria, Iran and Pakistan.

S&P And Fitch Warn About Cutting Hungary’s Credit Rating To Junk

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– Hungary May Be Pushed to Junk Grade This Month on S&P Move (Bloomberg, Nov. 12, 2011):

Hungary’s sovereign credit grade may be cut to junk this month after Standard & Poor’s Ratings Services placed the country’s lowest investment grade on “CreditWatch with negative implications.”

S&P is likely to make a decision this month on Hungary’s credit grade, currently at BBB-, the rating company said in a statement today. Fitch Ratings yesterday cut the outlook on Hungary’s lowest investment grade to negative from stable, joining S&P and Moody’s Investors Service.

– Fitch cuts rating outlook on Hungary to negative – Country one step closer to junk grade (Portfolio.HU, Nov. 12, 2011):

Hungary is now the closest possible to junk grade at Fitch Ratings as the credit rating agency has revised the Outlooks on the country’s Long-term foreign and local currency Issuer Default Ratings (IDR) to Negative from Stable and affirmed the ratings at ‘BBB-‘ and ‘BBB’, respectively. Hungary is now a single step away from non-investment status with a negative outlook at all three major rating agencies (Fitch, S&P and Moody’s).

Moody’s Downgrades Spain’s Credit Rating By Two Notches

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– Moody’s downgrades Spain by two notches (Telegraph, Oct. 18, 2011):

Moody’s has become the latest agency to downgrade Spain’s debt rating, warning that no “credible” resolution to the country’s economic crisis had yet emerged.

Moody’s cut Spain’s rating by two notches from A1 from Aa2, with a negative outlook, just days after a similar move from Standard & Poor’s.

Read moreMoody’s Downgrades Spain’s Credit Rating By Two Notches

Moody’s Downgrades Italy’s Credit Rating By 3 Notches From Aa2 To A2 With A ‘Negative Outlook’

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– Italy downgrade deepens contagion fears over euro debt crisis (Guardian, Oct. 4, 2011):

Ratings agency Moody’s slashes Italy debt rating by three points, increasing pressure on European governments trying to contain financial crisis.

Italy’s sovereign debt rating has been cut for the second time in as many weeks, with ratings agency Moody’s citing “sustained and non-cyclical erosion of confidence” as it slashed its forecast for the country.

In a report released after US stock markets closed on Tuesday, Moody’s downgraded Italy’s government bond ratings from Aa2 to A2 with a “negative outlook”, suggesting further cuts could be to come. The move threatens to increase Italy’s cost of borrowing, and will add yet more pressure to European finance ministers now wrestling with a financial crisis that has spread across the continent.

Read moreMoody’s Downgrades Italy’s Credit Rating By 3 Notches From Aa2 To A2 With A ‘Negative Outlook’

Moody’s Downgrades French Bank Ratings

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– French bank ratings downgraded by Moody’s (BBC News, Sep. 14, 2011):

Credit rating agency Moody’s has downgraded two French banks after reviewing their exposure to Greek debt.

Credit Agricole was cut from Aa1 to Aa2 and Societe Generale from Aa2 to Aa3.

A third bank, BNP Paribas, was kept on review for a possible downgrade.

Read moreMoody’s Downgrades French Bank Ratings

French Banks May Be Downgraded By Moody’s As Soon As This Week

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– French Banks Poised for Moody’s Downgrade (Bloomberg, Sep 11, 2011):

BNP Paribas (BNP) SA, Societe Generale SA and Credit Agricole SA (ACA), France’s largest banks by market value, may have their credit ratings cut by Moody’s Investors Service as soon as this week because of their Greek holdings, two people with knowledge of the matter said.

Moody’s placed the three banks’ ratings on review in June to examine “the potential for inconsistency between the impact of a possible Greek default or restructuring and current rating levels,” the rating company said at the time. Cuts are likely as the review period concludes, said the people, who declined to be identified because the matter is confidential.

Read moreFrench Banks May Be Downgraded By Moody’s As Soon As This Week

Moody’s Downgrades Japan’s Credit Rating From Aa2 To Aa3

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– Moody’s Downgrades Japan From Aa2 To Aa3 (ZeroHedge, Aug 23, 2011):

What was that word Freud used when you are a weak, pathetic, corrupt, powerless, piece of anachronistic filth and instead of doing the right thing (for fear of losing your job or worse), you lash out at a weaker and irrelevant substitute? Oh yes, projection.

Moody’s lowers Japan’s government rating to Aa3; outlook stable

Singapore, August 24, 2011 — Moody’s Investors Service today lowered the Government of Japan’s rating to Aa3 from Aa2, concluding the rating review that began on May 31. The outlook is stable.

The rating downgrade is prompted by large budget deficits and the build-up in Japanese government debt since the 2009 global recession. Several factors make it difficult for Japan to slow the growth of debt-to-GDP and thus drive this rating action.

Read moreMoody’s Downgrades Japan’s Credit Rating From Aa2 To Aa3

Utah Rep Leads 11 US States to Recognize Gold as Money

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Full article here:

– Utah Rep Leads 11 US States to Recognize Gold as Money (King World News, August 22, 2011):

With gold surging to a new all-time high up over $40 in early trading and nearing the $1,900 level, King World News interviewed the man who spearheaded the Utah Legal Tender Act, which recognizes gold and silver as legal tender in the state of Utah.  This has gained worldwide attention, including days ago an interview with state run China TV.  When asked about the interview with China TV Ivory stated, “They were curious as to why?  Curious what we thought the impact would be with respect to the federal government?

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Obviously on the why we explained to them the very simple example, a silver dollar in 1960 would buy approximately five gallons of gas.  Well, that dollar today won’t buy you one fourth of a gallon of gas, but the silver will nearly fill your tank.”

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“Then with respect to the federal government, we have about eleven states now that are looking at running the same legislation.  And to the extent that we get the states standing in unison, that sends a very strong political message to Washington that the guardians of the liberty of the people in the states are not going to tolerate any longer the unchecked devaluation of our earnings and savings.”

…

Moody’s let the state of Utah know they were the only state in the US they were not going to review because of the fact that Utah was the only state preparing to move forward without federal funds, for them to just disappear.  When asked about this Ivory replied, “Yes, I ran some legislation called, ‘Federal Receipts & Reporting Requirements’ that requires all state agencies to disclose total federal receipts, the percentage it is of their budget and then the important part, what their contingency plan is in the event that federal funds go away in whole or in part.  Moody’s came in and had that bill in hand and said, ‘You’re the only state in the nation preparing for this.’”

SENIOR ANALYST AT MOODY’S: Ratings Agency Rotten To Core With Conflicts And Corruption

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– MOODY’S ANALYST BREAKS SILENCE: Says Ratings Agency Rotten To Core With Conflicts (Business Insider, Aug. 19, 2011):

A former senior analyst at Moody’s has gone public with his story of how one of the country’s most important rating agencies is corrupted to the core.

The analyst, William J. Harrington, worked for Moody’s for 11 years, from 1999 until his resignation last year.

From 2006 to 2010, Harrington was a Senior Vice President in the derivative products group, which was responsible for producing many of the disastrous ratings Moody’s issued during the housing bubble.

Harrington has made his story public in the form of a 78-page “comment” to the SEC’s proposed rules about rating agency reform, which he submitted to the agency on August 8th. The comment is a scathing indictment of Moody’s processes, conflicts of interests, and management, and it will likely make Harrington a star witness at any future litigation or hearings on this topic.

The primary conflict of interest at Moody’s is well known: The company is paid by the same “issuers” (banks and companies) whose securities it is supposed to objectively rate. This conflict pervades every aspect of Moody’s operations, Harrington says. It incentivizes everyone at the company, including analysts, to give Moody’s clients the ratings they want, lest the clients fire Moody’s and take their business to other ratings agencies.

Read moreSENIOR ANALYST AT MOODY’S: Ratings Agency Rotten To Core With Conflicts And Corruption

War Against Rating Agencies Begins: Italy Prosecutor Seizes Moody’s, S&P Documents

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– The War Against The Rating Agencies Begins: Italy Prosecutor Seizes Moody’s, S&P Documents (ZeroHedge, Aug 4, 2011)

And so the war against the rating agencies is now official as a floundering Europe does anything in its power to scapegoat anyone and everyone, starting with its natural sworn enemy of course, the rating agencies.

According to Reuters,

“Italian prosecutors have seized documents at the offices of credit rating agencies Moody’s and Standard & Poor’s in a probe over Suspected “anomalous” Fluctuations in Italian share prices, a prosecutor said on Thursday.“

Ah yes, it is Moody’s fault that Unicredit, Intesa, Fiat and pretty much all other Italian companies now close limit down at least once a day. Either way, this is sure to end well. We will bring you more as we see it.