I love the rationale behind the credit cuts of our biggest banks. Get this. S&P cut them because they feel the U.S. government will not bail them out, should they find themselves on the verge of collapse.
Oh, really?
S&P lowered its long-term issuer credit, senior unsecured, and nondeferrable subordinated debt ratings, after placing the companies on negative credit watch last month, according to a statement Wednesday. Firms affected also include Wells Fargo & Co., Goldman Sachs Group Inc., Morgan Stanley, Bank of New York Mellon Corp. and State Street Corp.
“We now consider the likelihood that the U.S. government would provide extraordinary support to its banking system to be ‘uncertain’ and are removing the uplift based on government support from our ratings,” S&P said in the statement.
What sort of horseshit is this? Does anyone else believe the banks are no longer too big to fail?
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Maybe they are afraid they’ll get sued again if anything like 2008 happens again.
http://fortune.com/2015/02/03/standard-poors-financial-crisis/
I guess it’s some kind of an attempt to make their ratings less clown like than they were in 2008.
These ratings agencies probably don’t know what they’re doing, in any case. But they get paid quite well for it, nevertheless. They are just one more huge mis-allocation of capital in our economy.
I HATE clowns
The hobo clowns at the carnival were okay. Twist balloons into hot dog shaped dogs and what not. Prat falls and all. Drunk clowns not the Gacy clowns. Those bastards belong at a Hillary rally. lol
“Never place a trade without consulting Exodus first, pal.” Lol the ads.
If those dumb ass banks go bust again so soon, perhaps its time for some creative destruction.
LOL
I can’t believe anybody cares what the S&P Ratings agency does. Caught without reform. The ratings are truly the definition of meaningless.
Sounds like a response to the new Fed rule forced by Congress that forbids rescuing individual companies ad hoc (AIG). The whole thing is retarded politics since in a time of crisis what needs to get done will get done. That said, I won’t shed any tears for the uber banks.
http://www.reuters.com/article/2015/11/30/us-usa-fed-lending-idUSKBN0TJ0AW20151130