French banks braced for credit-rating downgrade

* Banks expecting Moody's decision "imminently" -sources * Agency first put lenders under review in mid-June * Funding fears have led to depressed share valuations By Lionel Laurent PARIS, Sept 10 (Reuters) - France's top banks are bracing themselves for a likely credit rating downgrade from Moody's, sources close to the situation said on Saturday, further complicating their efforts to assure investors they are riding out the tensions in funding markets. Several sources said on Saturday that BNP Paribas , Societe Generale and Credit Agricole were expecting an "imminent" decision from the ratings agency, which first put them under review for possible downgrade on June 15.

Reuters

Without another prop up for these banks futures traders will drive them to the ground come Monday if the downgrades do happen. The IMF's Lagarde has been trying to get support for funding them if necessary, and the G7 said they were willing to intervene if it's needed, but I think people are realizing that the constant bailing out of too big to fails never solves any of the problem, so it may not matter what they do anymore, we'll see.

Greece will default, there is no way that won't happen. When is anyone's guess but I believe both French and German banks are heavily tied to Greek debt. The ECB, I think I read on ZeroHedge, has something like 1/2 trillion in waiting for more bailouts. Austerity measures are failing but TPTB have to show their game face and keep pumping money into markets and bailouts. This will be an interesting week and with QE3 all but certain this month, October is gearing up to be very volatile.

beans, bullets and bullion....get ready !

brill