The past 48 hours have become a free-for-all flame war involving the titans of British media, including the BBC, the Guardian, the Times and, the paper that started it all, the Telegraph. Several hours ago, the first (of meny) skeletons in the closet busted loose and is suddenly threatening to expose some of the dirtiest laundry of UK high society.
Just hours after apparently settling its suit with the USA (not at all retaliation for downgrading them), S&P has taken the big red marker out on a slew of European banks:
Downgrades: Credit Suisse, Barclays, Lloyds, Bank of Scotland, RBS, HSBC, and Ulster Bank
On Watch Negative: Raiffeisen Zentralbank, MBank, Unicredit, Commerzbank, and Deutsche Bank
The driver of the shift in perspective is the apparent removal of the 'bailout put', as the prospect of "extraordinary government support" appeared less likely under recently passed bail-in legislation.
Europe's banks are vulnerable in 2015 due to weak macroeconomic conditions, unfinished regulatory hurdles and the risk of bail-ins according to credit rating agencies ... Oh what a tangled web, we weave ...