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Moody's Downgrades 16 Spanish Banks

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posted on May, 18 2012 @ 03:05 AM
Moody's down grades 16 banks

Ratings agency Moody's has cut the credit ratings of 16 Spanish banks, a further blow to a country that is struggling to deal with the bad debts of its banking sector.

In cutting the ratings, Moody's cited the "adverse operating conditions, characterised by the renewed recession, the ongoing real-estate crisis and persistent high levels of unemployment".

Bankia was forced to deny a report customers had taken 1bn euros ($1.3bn; £800m) out of the bank, which is set to be part-nationalised, in the past week.

The Spanish Gov and Bankia say this is not true. Anyone bank here ?

So I was talking to my Wife this evening at the park about the letter she received from her bank. So I told her I would check it out this evening. We live in the USA. Anyhow I went on and explained to her about the trouble brewing in Europe. She said she was going to take action. Well I told I her expect 3-4 months before the banks in Spain are down graded. Well I get home do a search and find this ! Looks like my wife is taking action now as of tonight pulling every thing out of Spanish banks.

Also "Santander UK is in trouble, I know that for fact, because my wife deals with them also. she also received a letter from them as well.

I really did not think it was going down this fast. Holy smokes guys S*** is hitting the fan already. I wish I could add more to this post, but I will say the letter's she received were assuring her everything is safe. loans- notes etc would be transfered to other banks and to expect new paper work and details That is what really got my attention . The Statander letter was really veage to say the least.

Just in :

European shares fall on worries over Spanish banks

Moody's said there were several reasons behind the downgrade, including Spain's slide back into recession, the financial challenges facing the Spanish government and bad loans in the property industry.

This sound so Familiar. If didn't know better this reads like the U.S in 2008 all over again. I bet trading comes to stop in Spain some time today.
edit on 18-5-2012 by SJE98 because: (no reason given)

posted on May, 18 2012 @ 03:19 AM
Moody's was a rating agency that gave all of the large banks glowing credit ratings just before the banking crisis of 2007 and 2008.

Now they are downgrading retail banks when the bank's debts are or would be underwritten by national governments and the European central bank?

It doesn't add up.

The USA government needs to destroy the Euro area bond market so that money flows into dollar government bonds rather than Euro area government bonds. That allows the US government to keep the central bank interest rate down which keeps the interest rate down across the US economy.

A popular and functioning Euro area bond market means it costs the US government more to borrow which means that US businesses and consumers also pay more to borrow. The US government and the US economy have an interest in the Euro area failing.

The fact that Moody's is a US rating agency is perhaps not merely incidental.

edit on 18-5-2012 by ollncasino because: grammar

posted on May, 18 2012 @ 03:31 AM
reply to post by ollncasino

These ratings agencies are as guilty as the banks and our own governments for causing this financial crisis. They should all be investigated for fraud.

posted on May, 18 2012 @ 03:53 AM
reply to post by ollncasino

My wife said to me the same as you did. She does follow the news in Spain and speaks to her friends their. She did tell me that her friends were telling her, that for the past month the MSM outlets in Spain were saying " The Banks are to Big to Fail " Sound familiar fellow ATS'ers ? . I wish she would have told me that sooner, I could have made a post and early waring on ATS. She knows more about Spanish Banks more than I do. I know she is Freaked out about The run being made on Bankia, which she think is true. She is transferring everything now. I heard her say " Transfer to US Bank etc, etc.. " If my wife is doing this , you can bet everyone else in Spain is also.
edit on 18-5-2012 by SJE98 because: (no reason given)

posted on May, 18 2012 @ 03:56 AM
And yet the EUR/USD pair is finding greater support at these levels.

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