21 Responses to Fault lines appear as crisis worsens: Moody’s to downgrade 3 large U.S. banks

  1. luisport says:

    zerohedge zerohedge
    Goldman announcement EURUSD trade has been stopped out to come after market close
    há 6 minutos

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  2. “But analysts and investors said the downgrade was likely to have little immediate impact on Bank of America’s business. “It certainly doesn’t look good, but operationally it shouldn’t affect them that much,” said Jon Finger, managing partner of Finger Interests Number One Ltd, a Houston-based investment firm that owns Bank of America shares.”

    Who, exactly, is this guy trying to fool? THEY ARE SHOWING THE DOOR TO 30,000 EMPLOYEES! I’m glad the managing partner of Finger Interests Number One, Ltd is confident in the operational ability of BofA. I wonder if the 30,000 people being laid off wouldn’t suggest he change the name of his investment firm to One Middle Finger, Ltd?

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  3. luisport says:

    zerohedge zerohedge
    MKM says S&P 500 May Drop 10% Before ‘Relief Rally’ Emerges: BBG
    há 2 minutos

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  4. luisport says:

    zerohedge zerohedge
    Rehn says “significant “slowdown is in the cards for the US
    há 2 minutos

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  5. luisport says:

    Nouriel Roubini is calling it this morning, following a bout of dismal economic data around the world. Europe and the U.S. are “effectively in recession” and there’s nothing policy makers can do to save them.

    @Nouriel tweets:

    Economy already in recession. Whatever the Fed does now is too little too late
    UK in double dip @MarkitEconomics: CBI Trends total orders at -9 in. UK Man PMI highlights real weakness in order books twitpic.com/6onoto
    EZ in recession @MarkitEconomics: Flash Eurozone Composite PMI comes in below consensus for the 4th time in past 5 mths twitpic.com/6oneor
    China slowing @MarkitEconomics: release saw HSBC Flash China Man PMI remain <50 at 49.4 (Aug:49.9). Output index also <50 at 49.2 (Aug:50.2)
    US, Eurozone and UK are effectively in a recession now. And policy makers are running out of policy rabbits to pull out their policy hats
    RGE (www.roubini.com) predicted in July a 60% probability of recession in most advanced economies. By now that probability is much higher.
    Only issue now: will it be a mild G7 recession or a severe recession plus global financial crisis as bad or even worse than the 2008-09 one?
    My 8-point plan on "How to Prevent a Depression" & a financial crisis since a recession is at this point unavoidable bit.ly/qqsUv8

    Read more: http://www.businessinsider.com/roubini-recession-is-unavoidable-2011-9#ixzz1YgolRiQi

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  6. luisport says:

    Italy 10-year yield spread over Germany at record FRANKFURT (MarketWatch) — The extra yield demanded by investors to hold Italian 10-year government bonds /quotes/zigman/4869096 IT:10YR_ITA -0.80% over German bunds /quotes/zigman/4869083 DE:10YR_GER -4.83% hit a euro-era record of 4.054 percentage points Thursday, according to electronic trading platform Tradeweb, surpassing the previous record of 3.857 percentage points on Aug. 4. The Italian 10-year yield was seen at 5.723%, while safe-haven flows amid a global equity selloff drove the 10-year bund yield to a new record low below 1.67%. Meanwhile, the cost of insuring euro-zone debt against default jumped across the euro zone, with even Germany rising to a record level. The spread on five-year German credit default swaps rose to 112 basis points, according to data provider Makrit, up from 98 on Wednesday and 82 a week ago. That means it would now cost $112,000 annually to insure $10 million of German debt against default, up from $98,000 on Wednesday. Spreads for Italy and Spain also hit record-wide levels, Markit said http://www.marketwatch.com/story/italy-10-year-yield-spread-over-germany-at-record-2011-09-22?link=MW_latest_news

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  7. luisport says:

    BreakingNews Breaking News
    UPDATE: US stocks dropping sharply; Dow drops 350 pts; S&P loses 36.10 pts; Nasdaq sheds 75.84 pts – @MarketWatch http://bit.ly/r8GkMa
    há 2 minutos

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  8. luisport says:

    zerohedge zerohedge
    Something is rotten in the state of… Denmark CDS Rises to Record
    há 32 segundos »
    zerohedge zerohedge
    IMF’s Lipsky says it is clear that European banks need more capital
    há 3 minutos

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  9. luisport says:

    BreakingNews Breaking News
    FTSE 100 Index closes down 4.7%, its biggest one-day fall in percentage since March 2009 – @BBCBreaking http://bbc.in/rpz8k6
    há 2 minutos

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  10. luisport says:

    zerohedge zerohedge
    ECB’s Liikanen sees huge risk of European debt crisis spreading – may become global
    há 1 minuto

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  11. Amy says:

    Dow down 428 now.

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  12. luisport says:

    I’m listening to Cramer, Roach and the other talking heads on TV.

    Bottom line from these folks is that the market’s a buy.

    China is not going to have a hard landing says Roach, and according to Cramer THERE WILL NOT BE ANOTHER LEHMAN.

    It’s getting impossible to figure what will happen next in this world.

    But to even think that there is a “0” chance of another TBTF failing is just cheerleading.

    There are at least a dozen EU banks who have had their stocks collapse. Their market cap value is less than 1% of assets.

    The “Short Ban” in Europe is forcing global investors to take defensive positions in bank stocks where trading is not restricted. This is just adding to the selling in the US financial names.

    Lehman went bust in a matter of days.

    The end came after the stock broke $5.

    When a stock breaks $5 there is a pretty decent chance it is headed to zero. Institutional holders (there are a ton who own this dog) HAVE to off load stocks when the $5 level is breached.

    I think that BAC should not trade under $5 based on their book. But that makes no difference at all. “Book” and “logic” have little to do with what is going on today. The problem is that everyone understands the market dynamics. In the present climate the market players will push BAC, knowing that long-term holders will be forced to sell if the “players” prevail.

    There is no TARP option this time around. The TBTF argument has been decided. Failure will be permitted this time around. Should things role in this direction the Fed could stand up and purchase a big chunk of BAC assets. But that would be the last decision that Bernanke will make. There is absolutely no stomach left in America for another big bank bailout. There is no “Bernanke Put” in BAC stock.

    Cramer is dead wrong. Another Lehman type event is staring us in the face. It will probably come first in Europe, but it will boomerang around and hit BAC hard

    Read more: http://brucekrasting.blogspot.com/2011/09/13-cents-away-from-problem.html#ixzz1Yhu3SHG7

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  13. luisport says:

    MarketWatch MarketWatch
    por BreakingNews
    Dow industrials down 500 points in final hour of trading http://on.mktw.net/qdNfNg
    há 2 minutos

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  14. luisport says:

    zerohedge zerohedge
    3rd biggest weekly point drop in the Dow Jones Industrial Average ever http://bit.ly/o2jnSp
    há 2 minutos

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  15. luisport says:

    BreakingNews Breaking News
    The Dow sets new low for the year of 10,601 on drop of 500 points as fears of recession rise – @AP http://apne.ws/huXjAj
    há 4 minutos

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  16. luisport says:

    Obliteration!

    But first, the scoreboard:

    Dow: -387.37
    NASDAQ: -79.69
    S&P 500: -36.19

    And now, the top stories:

    The “day” really started yesterday around 2:20 when the FOMC released its highly anticipated “Operation Twist” announcement. Markets were already down modestly heading into that, but the selloff got serious after that, and stocks really fell out of bed. To some extent, the selling was a “sell-the-new” kind of thing, and perhaps to some extent some were disappointed that Bernanke didn’t go further. Alongside the announcement, yields on long-term Treasuries plunged through the floor.
    Not long after the market closed, more bad news from Washington came: The House voted down a continuing to keep the government open. A government shutdown is a real possibility.
    That selling carried through. Asia got smoked across the board last night. Hong Kong fell 4.8%. Korea fell another 2.9%. What’s more, Chinese flash PMI came in weak, confirming slowdown fears there.
    But the real pain was in Europe, where French banks continue to be at the center of the show. They got demolished on all kinds of ugly headlines, like Mohamed El-Erian talking about a huge run on them (in an FT piece) and a story BNP Paribas going to the Mideast looking for fresh cash. This of course lead to selling in everything else, and all the major indices got destroyed. Clearly the crisis is not a “Greek” crisis anymore. The banking system has been infected. Europe, too, clocked in with a bad PMI report. The slowdown is real.
    And the follow through continued in the US. Dow futures were already pointing to a loss of about 200 points when at 8:30 AM we got (yet) another disappointing initial claims report. Later at 10:00AM, we did actually get a surprisingly good reading from the FHFA home price index, but nobody cared.
    Markets trashed everything and everyone all day. Stocks got clobbered (never mounting anything resembling a comeback), commodities got destroyed, gold got smashed, oil fell below $80, and the Swiss Franc continued to cede its supersafehaven status. Only the yen, the dollar, and US Treasuries (where yields continue to plumb fresh lows) turned in positive/respective showings. BTW: If gold investors are bummed about the 4% decline today, silver investors, who lost over 8% should be annoyed.
    There wasn’t much mitigating on the corporate front today. FedEx, the ultimate economic bellwether, warned about next quarter’s earnings. Bank of America fell because, well, it’s Bank of America. Morgan Stanley got really hit on concerns over its French bank exposure. From the tech world, reports seemed to confirm that Meg Whitman will be the next CEO of Hewlett-Packard once it gets around to firing to actually firing the current CEO, Leo Apotheker.

    Read more: http://www.businessinsider.com/closing-bell-september-22-2011-9#ixzz1YiW1FDif

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  17. chris smith says:

    The banking problem is going to remain a global problem until the authorities here and overseas say the following to each and every financial institution:
    •You will identify every asset on your balance sheet at current market value, and you will demonstrate you are solvent at that market value. If you claim to have “hedges” through credit default swaps or other instruments, you will prove the counterparty has the money to pay. If you cannot or will not you will be closed and liquidated tomorrow morning.
    •You will continue to maintain this accounting on a forward basis and you will make it publicly available on a daily and forward basis.
    •If you need to be recapitalized to meet these requirements we (will/will not) do (x, y, or z) exactly one time, but every member of your board and senior management will be fired and, if there has been any material misstatement of your financial position, prosecuted.

    If this happens the crisis and market crash ends that same day.

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    • nickk0 says:

      “If this happens the crisis and market crash ends that same day.”

      Are you suggesting they do HONEST accounting practices, on WAL-STREET ??

      I give it a snowball’s chance…. In Hell.

      – Nick

      Like

  18. We’re watching the Piper get paid, now. This isn’t over, yet.

    With the financial news of the day, I just had to write a sequel to

    “War Of The Money Worlds”

    The boys are a little testy, this week.

    Like

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