It looks like you're using an Ad Blocker.
Please white-list or disable AboveTopSecret.com in your ad-blocking tool.
Some features of ATS will be disabled while you continue to use an ad-blocker.
Moody's downgrades long-term ratings to Aa3 on normalised systemic support, Outlook negative, BFSR remains on review to consider impact of funding challenges on credit profile
However, a conclusion with a negative outlook on the BFSR would lead to a renewed negative outlook on the long-term ratings. Given this possibility, we are maintaining our negative outlook on the long-term ratings during the review of the BFSR.
However, during the review, Moody's concerns about the structural challenges to banks' funding and liquidity profiles increased, in light of worsening of refinancing conditions, and have prompted an extension of the review. The continuing review will focus directly on these funding and liquidity challenges for SocGen which, given the current environment, could become long-term constraints to the performance of its franchise.
"The bottom line is that it looks like a Lehman like event is about to be unleashed on Europe WITHOUT an effective TARP like structure fully in place. Now maybe, just maybe, they can do what the US did and build one on the fly - wiping out a few institutions and then using an expanded EFSF/Eurobond structure to prevent systemic collapse. But politically that is increasingly feeling like a long shot. Rather it looks like we will get 17 TARPs - one for each country. That is going to require a US style socialization of each banking system - with many WAMUs, Wachovias, AIGs and IndyMacs along the way. The road map for Europe is still 2008 in the US, with the end game a country by country socialization of their commercial banks. The fact is that the Germans are NOT going to pay for pan European structure to recap French and Italian banks - even though it is probably a more cost effective solution for both the German banks and taxpayers....Expect a massive policy response in Europe and a move towards financial market nationlaization that will make the US experience look like a walk in the park. "
Originally posted by baddmove
no one cares?
Moody's downgrades long-term ratings to Aa2 on Greek exposures, ratings
remain on review to consider impact of funding challenges on Credit Profile
Meanwhile, the Aa3 long-term debt and deposit ratings on Credit Agricole
Corporate and Investment Bank remain on review
Apparently the market finally woke up: seconds ago SocGen shares, completely out of nowhere, just took a massive spike lower, tumbling a good 8% on no news. There is a goal seeked version that attributes the move to remarks by Noyer discussing French bank stability may have caused this but this makes little to no sense, as they were supposed to be favorable for banks. It appears like a major block was dumped as someone realized they have had enough with the rollercoaster. Now the question is: "why?"
Originally posted by Shenon
Austria Fails To Ratify EFSF Expansion, EURUSD Plunges
Yup, Europe is open, and the suiciding has started early.
AUSTRIAN PARLIAMENT COMMITTEE DOESN'T APPROVE EFSF UPGRADE
AUSTRIAN PARLIAMENT COMMITTEE NEEDED 2/3 MAJORITY
As a reminder all countries need to ratify the EFSF, even the weakest links, or else no bailout.
Originally posted by Peruvianmonk
Greece will default....VERY Soon.
The Eurozone will collapse as we know it. This will be damaging for the U.K. as plenty of our banks are exosed to Greek, Irish, Portugal & Italian debt.
This could be quite, annoyingly devastating.
Originally posted by applebaum
I am not an economist. I really do not have a full grasp of how this will affect the world financial stage. It seems to me that much of the world is in deep debt to one of the most communist countries on the planet. So what happens if Greece, France, Europe and even the USA go belly-up financially. Is China simply posturing for world domination both physically and financially? Seems to me that is where the power is anymore. Please educate me. I sincerely hope I am wrong.
Originally posted by NewsWorthy
I've been asking the same question.....turns out America can pay China off in full but we'd have to tank the Whole Worlds Economy to do so... This is all just the 1 World Resource Reform IMO... China is definitely grabbing for World Leadership but more than likely All The Governments are working together behind the scenes. I think they are purposefully invoking fear in the masses so it's easier to herd them into whatever it is they have planned. China uses the U.S. as the Boogey Man and America uses China the same way. Eventually they will both agree on a New Currency that is Neither Chinese nor American and the rest of the world will follow suit...Either that OR the Mother Of ALL Wars is on our Doorstep.