More Green Shoots To Cheer About
You know this will curtail lending
Credit ratings agency Standard & Poor’s on Wednesday cut ratings on 18 banks amid concern about further weakening in the financial sector.
S&P said the changes reflected its assessment that volatility will remain in the financial sector and the industry is expected to face tighter regulatory oversight. S&P also said loan losses, which have plagued the industry for more than a year, are likely to continue to increase and could grow beyond expectations.
BB&T, Capital One Financial, Regions Financial and Wells Fargo were among the largest banks that saw their ratings cut by S&P.
Widescale changes to the industry because of the credit crisis and ongoing recession will dramatically alter the banking landscape, S&P credit analyst Rodrigo Quintanilla said in a release.
“We believe the banking industry is undergoing a structural transformation that may include radical changes with permanent repercussions,” Quintanilla said. “Financial institutions are now shedding balance-sheet risk and altering funding profiles and strategies for the marketplace’s new reality. Such a transition period justifies lower ratings as industry players implement changes.”
S&P did note that recent capital raising efforts in the sector will help defray some of the losses banks are facing.
why do people all of a sudden out of nowhere start referring to this as “green shoots”…. wtf propaganda is this?
Propaganda it is….hey at least were not racing to 0 anymore…remember you got to have hope or you will never make a move…at least as far as the public is concerned since they short very little
banks raising capital=more money without lending= housing crunch+increased foreclosures at least compared to money’s true value…
short real estate long commodities
The commodities play may be over short term…I agree on the rest.