Here We Go: Fitch Places Bank Of America, All US Banks On Rating Watch Negative

Tyler Durden's picture

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knukles's picture

Was it Shelia Bair who said it was nothing but a minor paper work problem, implying signatures on the wrong line or something like that?

Rusty Shorts's picture

 - and I thought Fitch was downgraded.

Edmon Plume's picture

The ratings agencies are still relevant?  LOL!

HarryWanger's picture

Exactly! They aren't relevant and no one gives a damn. Especially those buying BAC today which is up over 1% today and actually spiked when that story hit.

AccreditedEYE's picture

If you believe in this move so much, why aren't you buying equities hand over fist? And, for the THIRD time, why did you sell the rally's darling, AAPL?

lizzy36's picture

Better than rating agencies, gasbags reporting that Larry Fink looking to offload his 35% stake in BAC.

AccreditedEYE's picture

Fink will get to buy the stake (BLK) from a distressed seller (BAC) AND go after the mortgage put backs, financed by TARP, er, I mean QE2. Oh, is he still collecting a fee for advising the government? lol

Sudden Debt's picture

Why are there still rating agencies?

cossack55's picture

Because the Chinese rating agency isn't open yet.

heyligen's picture

Because they are paid for their ratings by the rated ones who like to pay for their good ratings.

Mongo's picture

Wow, does this mean the rating agencies will be upgraded?

 

This is a rhetorical question...

the not so mighty maximiza's picture

How dare Fitch challenge this recovery.

Cognitive Dissonance's picture

Burn the heretic. Quickly I might add before someone listens to what they have to say.

HelluvaEngineer's picture

I'll just check real quick and see how high WFC surged on this news...

plocequ1's picture

Thats just to cover their asses. Nobodys listening.

cossack55's picture

Philosophy 101

"If a rating agency falls in Boston, Chicago or New York, will anybody hear?"

plocequ1's picture

I dont know what to listen to anymore. Im tired.

jtmo3's picture

Ya, the ratings agencies. Is that a joke? Today should show them that there day in the sun is over. They put on watch...stock goes up. In all fairness, it's like a paper dam trying to hold back the Mississippi. The FED and free money are covering all their backs so what's the issue? It's not like they have anything to lose.

williambanzai7's picture


THE RATING AGENCIES

(The Adams Family Song)

WilliamBanzai7

They’re sleepy and they’re stupid,
Mysterious and crooked,
They’re all together shakey,
The Rating Agencies.

Their models are a screa-um.
When people come to see ‘em
Their living in a drea-um.
The Rating Agencies.

Moody’s

S&P

Fitch

So get a Wall Street witch’s shawl on.
Just pay their fees to get them crawlin.
We’re gonna pay a call on
The Rating Agencies.

Arkadaba's picture

+100 though you are starting to scare me - you understand the macro, know how to do graphics (I suck at graphics), are extremely creative ... and now ... you know rhythm and pitch :) I'm outta my league.

Clark_Griswold Hedge Mnger's picture

In other News.... Fletch, er...Fitch annouced a new grading curve approved by "some drunk dude watching porn at the SEC".

This new scale is called the "Waddle Event Scale"

Waddle 1= F+, but its not your fault, its the sytem

Waddle 1.5 = C- This refers to the heavy hord of cash but poor excuses not accepted by the general public.  This will require more porn watching and some "emergency blow".

Waddle 2= to be determind soon, but somewhere between Aa- and Double Ds

Waddle 3= see Waddle 2

Waddle 4 = High gross margin of rape, pillage and burning.  Approved as TBTF, officially sponsed by Uncle Benny and the Jets.

Waddle 5: Classified but rumored to be "double secret Bb-"

That is all.

cossack55's picture

Would be nice if you could fit in some CFTC comments, Tranny Porn came up the other day.

Clark_Griswold Hedge Mnger's picture

Thank you, I will have to give it some thought and revise the Waddle grading curve a bit.... WB7, may need some graphics for this one...lol

Clark_Griswold Hedge Mnger's picture

Bingo!!!!!!..... lol replace the bell with  Bennie's head.....or Barney Franks...

That is awesome!!!!!!!!!!!!!!!

Clark_Griswold Hedge Mnger's picture

OH Shit!  that is hillarious..... alright, I'm gona have to print that one off WB!!!!!!

Perfect!

 

 

I hope you are keeping these images Will, you could put together a book on them, called it "Idiot Bankers Guide to Reality"

cossack55's picture

That WB7 is approaching genius level

Zero Debt's picture

Fitch-Waddell Event Scale... This has potential to be picked up by some mainstream economist and then be grossly misrepresented and thus subsequently upheld to national religion and dogma. Well done.

bugs_'s picture

Hey I'll give Fitch cool points for stepping up and saying something.  Its late in the game but they must not be avid readers of Zerohedge so we have to cut them some slack.

Arkadaba's picture

lmao !! joking ... right?

And self-promoting again but I have to share this. Love Canadian humour and too good not to share:

http://arkadaba.blogspot.com/2010/10/gordon-pinsent-reads-from-justin.html

 

Boilermaker's picture

SPX almost Negati...oh never mind.

frankTHE COIN's picture

Cut that number in half and then double it.

vote_libertarian_party's picture

Now I'm totally confused.  If these are all TBTF banks why wouldn't all of their ratings be A+++++++++++++++++++++++++++++++?

Quinvarius's picture

Looks like the Fed has all the banker's backs.  What a joke.

jus_lite_reading's picture

If anyone follows my other posts on Yahoo, you would know that Fitch is now three days late to my initial downgrade of BofA and JPM (Citi on watch list) Check the CDS spreads. I expect a run on the banks to start very shortly, with BofA to be hit first and hard. FDIC, let me introduce you to the needle that will break your back. Deutsche Bank and Societie Generale are next in line after the EU crisis explodes in the coming weeks. Contagion then spreads back here to JPM. But what do I know?

Silverstar's picture

Opera ends when the fat Lady stops singing...

 

I can not hear anyone singing anymore....

 

So the Show ends soon.

Chandos's picture

The can can still be kicked a few times locally, and then globally - that is, war - before the fat lady can rest her voice...

I'm thinking of a cartoon..very simple: kid kicks a can; runs after it; next square, the can is bigger; kid scratches head; kicks can again, runs after; can is much bigger; kid is flabergasted, runs again; last square: can kicks kid. End of story.

 

Chandos

Pchelar's picture

In Russia can kicks you?

tony bonn's picture

"Support Ratings communicate Fitch's judgment on whether a bank would receive support from the U.S. Government should this become necessary."

more fascist banksters keep the profits, taxpayers keep the losses bullshit...

fuck fitch, fuck bac

a downgrade is totally meaningless - amid all of the upgrades the headline didn't mention.

junkhand's picture

meanwhile, on the other side of the pond.....

 

check out anglo irish's jr. bond holder credit spread blowout:  http://www.cmavision.com/market-data/

 

Bob's picture

SO HOW CAN THE BANKS JUSTIFY PAYING OUT $144B IN BONUSES NOW???

THE COMPANIES CLEARLY NEED THE MONEY FOR RESERVES.

TonyV's picture

Fitch the Bitch

Buck Johnson's picture

I don't trust the rating agencies at all, they where the ones that where rating all this toxic junk AAA.  Don't get me wrong, those banks are bad and should be down rated.  But the rating agencies aren't downgrading them enough, they had to do something to show that they are "doing their job".  Remember in the news hearing about these agencies and their people emailing each other saying that they would rate paper if a cow did it, etc. etc..  These places should be investigated but all of a sudden they dropped it.  And thats because if they investigate them and shine to much light on their illegal activities, it would cast doubt on all their ratings.  You know, Muni-bonds and Treasuries etc., everything that we in the US need to keep our govt. and local govt. functioning. 

We need these institutions to give our paper a positive grade, and as long as they do we turn the other cheek.

Zero Debt's picture

The concept of centralized rating is just as flawed as the concept of centralized banking, centralized bailouts, for at least the following reasons-

  1. High risk of becoming part of the establishment
  2. Raising the stakes in maintaining status quo
  3. Need to disseminate exponentially bigger lies to cover up past small lies