Moody's downgrades Bank of America, Wells Fargo, and Citigroup

Moody's downgrades Bank of America, Wells Fargo, and Citigroup

www.blacklistednews.co m

In yet another blow to the financial sector, Moody's Investors Services announced the downgrade of Citigroup, Wells Fargo, and Bank of America -- three of the United States' top banks.

Moody's downgraded Bank of America (BAC, Fortune 500)'s long-term debt two notches to Baa1, Wells Fargo (WFC, Fortune 500)'s long-term one notch to A1, and Citigroup (C, Fortune 500)'s short-term debt one notch to Prime-2. Moody's offered a negative outlook for all three.

(visit the link for the full news article)

Well now, this is different. On top of downgrading the U.S., Moody's has now dowgraded 3 of the largest banks in America.

And, they base it on their doubts that the U.S. government will do any more bailouts of them.

"It is more likely now than during the financial crisis to allow a large bank to fail should it become financially troubled, as the risks of contagion become less acute," Moody's wrote in its downgrade note of Wells Fargo's stock.

While it is certainly refreshing to see ratings agencies actually doing their job, it's also an indication of the dire economic situation we are in.

www.blacklistednews.co m
(visit the link for the full news article)

Well, I remain in full denial, I guess....

Everyday I read the bad news....and then see everyone behaving like nothing is wrong....

Ergo, I do relatively little in response.

What a crazy ass world we live in.

I guess I'm spreading the picnic blanket out, taking a seat, and watching what unfolds next.

Crackers and cheese anyone?

Man, it sure is funny this happens after the markets close huh? I wonder what type of day tommorow will be...It's just seems the US is hanging on by a thread. One big disaster could probably put the nail in our collective pockets. I guess all we can do is really try to be thoughtful of the SHTF.

A lot of people seem to think we are getting extremely close to not being able to come back, financially or jobwise. Does anyone think our currency will have to change soon? You know the whole amero change that was talked so much about a couple years ago. Just reading where china said they were not going to exchange any money now with europe, that's huge in itself. Like I said, I wonder what will be the next big thing to hit the US?

www.todayonline.com...

Who decided that Moody's gets to assign these ratings to companies? Who died and made them God of all things financial. Seriously I would love to know.

Somebody needs to downgrade Moody's.

Let's face it, we are - and have been teetering on the brink of economic collapse...It's a matter of time. How many bailouts can take place before we go under?

I still feel that the "elite" (for lack of a better description, are lining their pockets no matter what. They will not be hurt, they will not go under. We, the typical citizen are going to be destroyed. While they sit in their comfy homes, eating their edible food, we will be rotting away, and they will laugh.

Sorry, that's how I see it.

reply to post by Aggie Man


Exactly! What is their credit rating? Who decides what theirs is? They ARE a publically traded company after all.

Originally posted by summer5
Let's face it, we are - and have been teetering on the brink of economic collapse...It's a matter of time. How many bailouts can take place before we go under?

Then let them go under on their own merit, no need to downgrade them and artificially speed up the process.

I still feel that the "elite" (for lack of a better description, are lining their pockets no matter what. They will not be hurt, they will not go under. We, the typical citizen are going to be destroyed. While they sit in their comfy homes, eating their edible food, we will be rotting away, and they will laugh.

Solution: feed the elite to my dog while I sit comfortably in their media room watch TV and eating their edible food along with my 300,000,000 closest friends.

Originally posted by Iamonlyhuman


Well now, this is different. On top of downgrading the U.S., Moody's has now dowgraded 3 of the largest banks in America.

And, they base it on their doubts that the U.S. government will do any more bailouts of them.

I sure hope we don't attempt to bail out these banks........they had a second chance and have proved themselves to be inept......they will deserve whatever happens to them this time.

Bank of America from personal experience and from first hand stories, deserves no pity.

I am not going to put much stock into their ratings, or the criteria on how they determine such ratings. If I remember correctly, they were totally aloof during the Mortgage Back Securities (MBS) fiasco which led to the economic emergency of 2008.

Moody’s, S&P Caved In to Ratings Pressure From Goldman, UBS Over Mortgages

The world’s two largest bond-ranking companies, both based in New York, made exceptions to rules when bankers asked for better safety ratings on complex mortgage-backed securities, the Senate Permanent Subcommittee on Investigations said yesterday. When Moody’s and S&P changed their assessments of hundreds of those bonds in July 2007, it helped trigger the financial crisis, the panel said.

I am not denying that the US economy is in dire straights, because everyone should have that feeling in their gut. Especially with the astronomical spending, lack of industry, and bailouts. However, this rating agency got wrong one of the biggest blunders in economic history, and now all of sudden they are in the downgrade game with US corporations and the government? This seems politically motivated to me? Lately, a lot of credit downgrades from this rating agency are aimed at the US? Hmm? What about the other economies? As far as I am concerned, the name Moody's is mud to me. They lost their legitimacy a long time ago. Those who live in glass houses should think twice about throwing stones.

Might be wrong, but I would say this is the start of the collapse (noticeable collapse)

Related news:

Italy downgraded, IMF says Europe behind the curve
Tue, Sep 20 2011
Jefferies Q3 signals tough times at Goldman, others
Tue, Sep 20 2011
S&P adds to euro stress with Italy cut
Tue, Sep 20 2011
GLOBAL MARKETS-Equities recover from Italy downgrade hit
Tue, Sep 20 2011
Citi introducing fees on low-balance bank accounts
Fri, Sep 16 2011

Originally posted by loam
Well, I remain in full denial, I guess....

Everyday I read the bad news....and then see everyone behaving like nothing is wrong....

Ergo, I do relatively little in response.

What a crazy ass world we live in.

I guess I'm spreading the picnic blanket out, taking a seat, and watching what unfolds next.

Crackers and cheese anyone?

edit on 21-9-2011 by loam because: (no reason given)

That's called the "Normalcy Bias", the best friend of the apathetic.

It's coming, no doubt about it.

reply to post by AGWskeptic

Originally posted by AGWskeptic
That's called the "Normalcy Bias", the best friend of the apathetic.

It's coming, no doubt about it.

I have often wondered what the 'day before' looked like before the collapse of any great power.

Would any of those days look so different than the one we had today, for example?

I wonder.