Greeks pulled their cash out of the banks and stocked up with food ahead of a cliffhanger election on Sunday that many fear will result in the country being forced out of the euro.
Spain's rating was cut three notches, from A3 to Baa3 - one notch above junk.
Fitch Downgrades 18 Spanish Banks, Cites Concern About Bad Loans
BREAKING: Geithner: This time different from other Europe blow-ups; Euro. leaders not minimizing risks, not telling us they have lot of time
Moody's downgrades Cyprus's government bond ratings to Ba3 from Ba1; on review for further downgrade
(CBS/AP) NICOSIA, Cyprus - Moody's credit ratings agency has driven Cyprus deeper into junk status with a two-notch downgrade to Ba3 over an increased likelihood that debt-crushed Greece will leave the eurozone.
The International Monetary Fund on Wednesday approved a 1.4 billion euro ($1.13 billion pounds) disbursement to Ireland under a three-year IMF-EU rescue loan and cautioned that the broader euro-zone debt crisis could dampen the country's export-led recovery.
I have learned that finance directors and other executives from about a dozen of the Continent's biggest lenders held talks on the issue during the Institute of International Finance in Copenhagen last week.
I'm told that the discussions did not result in a formal decision to reduce the amount of information disclosed to Fitch, Moody's and Standard & Poor's, but one source familiar with the talks said today that "things are certainly moving in that direction".
The judgements of the dominant trio of ratings agencies have been questioned repeatedly as the Eurozone crisis has deepened, triggering downgrades of numerous European governments and major banks.
Moody's is expected to announce downgrades to the ratings of British banks including Barclays, Lloyds Banking Group and Royal Bank of Scotland in the next few days.
One senior bank executive put it like this to me: "The ratings agencies got it horribly wrong on the way up; there are lots of reasons to suppose they are getting it wrong on the way down."
Originally posted by amongus
Yep...same BS that members here on ATS have been spouting for over two years.
Europe must press ahead with closer political integration no matter how difficult this task may be, German Chancellor Angela Merkel
"It is our task today to make up for what was not done (when the euro was created) and to end the vicious circle of ever new debt, of not sticking to rules," Merkel said.
Originally posted by lacrimaererum
This will take your mind off it. Breathe. Relax. Its over,
Spanish banks borrowed a record €324.6bn from the European Central Bank in May, up from €319.9bn in April, according to Bank of Spain figures. The data cast doubt over the proposed €100bn banking bailout for Spain - will it be enough?
Borrowing from Portuguese banks also hit a new record high peak of €58.7bn last month. This shows that banks continue to shy away from lending to each other - trust is the main issue - as the eurozone debt crisis lurches to new lows.
Spanish government bond yields have surged to new record highs, tracked by Italian yields.
Of the 50 largest rated European banks, 27 currently have negative outlooks or negative CreditWatch placements, reflecting our view of the difficult economic and market environment across the region. For some banks, the negative outlooks are at least partly due to their domestic sovereigns also having negative outlooks. The other 23 institutions have stable outlooks and are primarily located in France, Germany, Sweden, and the UK.