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Meet The French Major Whose Spanish "A" Rating Keeps The ECB €17 Billion Margin Call Away

Tyler Durden's picture


Egan Jones may be a registered NRSRO, but that doesn't matter to the global status quo perpetuation syndicate ("SQPS" or "the syndicate"). Why? Because the small rating agency misplaced a comma when it was filing its NRSRO application with the SEC and has infuriated the same clueless and corrupt SEC, which 2 years after the flash crash still allows the high freqs to make a total mockery of the market (as seen here). Another reason: it recently downgraded Spain to a CC rating, the lowest and thus most accurate of all rating agencies, with a C rating projected, which means if its rating were to be taken into account by the ECB, the result would be massive margin calls amount to 10% or higher of all the Spanish bonds repoed at the ECB. Instead, the SQPS is delighted to have Canadian-based DBRS on its side. Why? Because the tiny firm's A-rating obviates all others' sub-A ratings, this includes Moodys, S&P and Fitch, at least in the eyes of the ECB and thus Mario Draghi has an alibi to not demand an additional €17 billion collateral call from Spain, which would send its banking system on full tilt (this is money neither Spain, nor its banks has to spare). Which is why we wish to present to our readers the man behind the Spanish A-rated myth: Fergus McCormick (Reed College; BA, with honors, French), formerly of Spanish bank BBVA (surely BBVA is not calling in any favors from its former employee currently head of sovereign ratings at DBRS; none at all).

Because if there is one person the SPQS, not to mention Spain's insolvent banks, should erect a monument to post-haste, it is Fergus, and his A (low) rating which is the only thing keeping the ECB from extracting its €17 billion pound of flesh from Spain (something the ECB most certainly does not want to do for numerous quite obvious just as insolvent reasons).

From LinkedIn:


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Mon, 11/05/2012 - 10:48 | Link to Comment PUD
PUD's picture

He went to prep school...I will write him in for president tomorrow

Mon, 11/05/2012 - 10:51 | Link to Comment malikai
malikai's picture

"He went to prep school...I will write him in for president tomorrow"

I think you meant to say perp school.

Mon, 11/05/2012 - 10:58 | Link to Comment BaBaBouy
BaBaBouy's picture

Eyre Me laddy-boys...

Iyle keep dem Speniards Efloat eye will...

Mon, 11/05/2012 - 11:08 | Link to Comment Matt
Matt's picture

No, No no you guys have this all wrong.

Someone asked him what the rating should be on Spanish bonds, and he replied "eh?". 

To be fair, it is a completely understandable misunderstanding from the Spanish people, who are unfamiliar with Canadian speaking style.

Mon, 11/05/2012 - 11:36 | Link to Comment AlaricBalth
AlaricBalth's picture

This is DBRS's criteria for an A rating:
"Long-term debt rated “a” is of satisfactory credit quality. Protection of interest and principal is rea- sonable, but the degree of strength is less than AA-rated entities due, for example, to a less diversified, more volatile government revenue base or recurring fiscal shortfalls. overall financial flexibility remains good and long-term economic growth prospects remain reasonable although the economic base may be somewhat smaller or somewhat less diverse."

I am hoping someone can comment on this because I am quite busy LMFAO.

Mon, 11/05/2012 - 12:01 | Link to Comment Hard1
Hard1's picture

BBVA  - Bastard Broke Vicious Assholes 

French major that worked at a spanish bank - yuck

Tue, 11/06/2012 - 00:46 | Link to Comment Half_A_Billion_...
Half_A_Billion_Hollow_Points's picture

Cette fois c'est différent

Mon, 11/05/2012 - 14:39 | Link to Comment Capitalist10
Capitalist10's picture

The "PG" in Fergus' resume means "Post Graduate", meaning he did a 5th year of high school.  This usually happens when some rich kid screws up so bad he can't get into any of the colleges he applied to.

Then, after his 5th year of high school, he goes to Reed and majors in French.  Hard to imagine more of a lightweight.

Mon, 11/05/2012 - 15:38 | Link to Comment James_Cole
James_Cole's picture

"Then, after his 5th year of high school, he goes to Reed and majors in French.  Hard to imagine more of a lightweight."

Lightweight?? Are you kidding me? Did you even care to notice the "honours" next to his BA in French? FRENCH btw the most romantic of all languages.

Do you know who else speaks French? Christine Lagarde. 

The only thing to be said is there are not nearly enough French majors running ratings agencies. I'd wager this gentlemens A rating is as good as gold.

And that's just scratching the surface, another aspect of this man's incredible cv that has yet to be highlighted is his crucial Mountaineering courses before internship at the Dept of Commerce. 

Lightweight, pff. I bet he can make a fire with nothing but two rocks and some dry branches. Questioning his ability to rate Spanish bonds is beyond the pale. 

Mon, 11/05/2012 - 21:29 | Link to Comment StychoKiller
StychoKiller's picture

Romantic != sentimental

Mon, 11/05/2012 - 11:14 | Link to Comment Gully Foyle
Gully Foyle's picture


I too feel there are a large amount of Lady Boys on ZH.

Mon, 11/05/2012 - 11:57 | Link to Comment The trend is yo...
The trend is your friend's picture

Fergy looks like a serial killer

Mon, 11/05/2012 - 10:55 | Link to Comment BandGap
BandGap's picture

Fergus McTurdus, that name is right out of one of the Back to the Future movies.

The circus is in full swing.

Mon, 11/05/2012 - 11:04 | Link to Comment CunnyFunt
Mon, 11/05/2012 - 10:48 | Link to Comment holdbuysell
holdbuysell's picture

Another LinkedIn profile change in 3...2...1...

Mon, 11/05/2012 - 10:48 | Link to Comment Sean7k
Sean7k's picture

I'm sure he is well paid. Rating agencies have been a joke for years, why pay attention to them now? Who really values bonds based on rating agencies? This is nothing different than CB's buying bonds with air money. 

Mon, 11/05/2012 - 11:02 | Link to Comment Stock Tips Inve...
Stock Tips Investment's picture

Rating agencies have done a good job in recent years. Including the big agencies, we have seen large errors and omissions in their work. In the case of sovereign debt (or semi-sovereign) there is great international pressure pra rating does not fall further and avoid complications MYORES. Learn to live with these distortions.

Mon, 11/05/2012 - 11:07 | Link to Comment HoofHearted
HoofHearted's picture

Holy shit! They don't even try to hire us econometricians/statisticians any more because we'd call bullshit on the whole thing and not agree to put our names to such bogus work. Get some perp school French major who would be lucky to find a job at Starbuck's??? That bastard will sign anything.

Sean Egan for Prez, bitchez!

Mon, 11/05/2012 - 11:15 | Link to Comment Broccoli
Broccoli's picture

Personally, I am inclined to trust a Starbuck's employee with zero education over a trained economists. Mordern economic theory, otherwise known as central planning, requires a person to have delusions of Godhood and a complete lack of common sense.

His degree in French is a plus.

Mon, 11/05/2012 - 11:48 | Link to Comment HoofHearted
HoofHearted's picture

Fair enough. I find I spend my time talking to business owners to get a real sense of what's going on. I'm a real fun person at conferences when I challenge long-held beliefs.

Speaker: "We assume a neo-Keynesian framework with the following parameters..."

Hoofy: "Why would you assum neo-Keynesian when it has been thoroughly discredited?"

Speaker, and then most of the audience looks at Hoofy. Hoofy listens to the rest of the lecture and then leaves, preferring to spend the time wandering around Paris rather than listening to the next speaker who is full of bullshit also.

Mon, 11/05/2012 - 10:51 | Link to Comment LongSoupLine
LongSoupLine's picture

gee, and formerly with Bear and Margin Stanley too.


i fucking love ZH.  Call these assholes out on the carpet one at a time if need be.

Mon, 11/05/2012 - 10:51 | Link to Comment JPM Hater001
JPM Hater001's picture

Did he do any trasnactions in selling central bank gold?

Mon, 11/05/2012 - 10:55 | Link to Comment CunnyFunt
CunnyFunt's picture

He's no Gordon Brown, that's for sure.

Mon, 11/05/2012 - 13:15 | Link to Comment Non Passaran
Non Passaran's picture

That reference was to the BIS gold trader, not to GB. 

Mon, 11/05/2012 - 10:51 | Link to Comment WaEver
WaEver's picture

this is why ZH is so much fun. Thinking that BBG costs 1500$ a month and nothing worthwhile to read.

Mon, 11/05/2012 - 10:51 | Link to Comment BandGap
BandGap's picture

Wow, ratings for rent on the next Oprah.

Mon, 11/05/2012 - 10:54 | Link to Comment SDRII
SDRII's picture

Tes Turkey gets an upgrade from Fitch. Can someone say Syria...

Mon, 11/05/2012 - 10:59 | Link to Comment fonzannoon
fonzannoon's picture

you would think these assholes would know who they are by now and would take down their social networking profiles.

Mon, 11/05/2012 - 11:15 | Link to Comment falak pema
falak pema's picture

well even if he knows burgundy from bordeaux he has worked for the US investment banking cabal before working for the Euro cabal. All in all a perfect candidate and "absolute friend" of the rating agencies; as explained here : 2948444

When thieves fall out...ha, ha ha, brave new world!

John Le Carré would be proud of him! 

Mon, 11/05/2012 - 11:25 | Link to Comment Orly
Orly's picture

Yes, falak, that is when it will get interesting, for sure.  When the thick-as-thieves cabal unravels, it will be everyone for themselves and utter chaos will reign.

Interesting times.


Mon, 11/05/2012 - 11:09 | Link to Comment Dr. Engali
Dr. Engali's picture

So can this guy stay any place for more than two years? I know his inability to hold down a job gives me confidence.


Edit.....I see he has been with his current employer for six years. He must  have learned not to use his teeth when he is on his knees.

Mon, 11/05/2012 - 11:03 | Link to Comment HD
HD's picture

I would have more respect for TPTB if they just came out and said, "Look, it's rigged -it's all rigged and pretending otherwise is just a waste of everyone's time. There isn't a God damn thing you peons can do about it, we have the money, the power, we make rules and decide what is legal. Your votes are meaningless, your riots and protests laughable. Just fall in line and this will all go much faster."

Mon, 11/05/2012 - 11:12 | Link to Comment hapless
hapless's picture

It's hard to get good table service when the help wants your blood.  So don't expect full disclosure anytime soon.

Mon, 11/05/2012 - 11:36 | Link to Comment HD
HD's picture

Human history has been dominated with slavery with no pretense - most slaves would have loved to have risen up and killed their masters. Fear, bread and circuses kept them in line. Not much has changed except now it's fear, HFCS and iPads.

Mon, 11/05/2012 - 21:33 | Link to Comment StychoKiller
StychoKiller's picture clam chowder for me, then.

Mon, 11/05/2012 - 11:14 | Link to Comment Unprepared
Unprepared's picture

Any clearer than it currently is?

Mon, 11/05/2012 - 11:03 | Link to Comment Catullus
Catullus's picture

The guy is obviously a spook. You don't work for the Dept of Commerce and be a Latin American economist without being a spook.

Inter-American Development Bank means funding militia groups amicable to the CIA.

Mon, 11/05/2012 - 11:17 | Link to Comment Wakanda
Wakanda's picture

If you look at his eyes you can see reflections of Langley, VA - not pretty at all.

Mon, 11/05/2012 - 11:21 | Link to Comment I Am Not a Copp...
I Am Not a Copper Top's picture

Bingo.  Notice the 3 year gap between Reed College and his "internship" at the Dept of Commerce.  And each job after seemed to allow for a lot of international travel.  Definitely a spook.

Mon, 11/05/2012 - 11:05 | Link to Comment Frank N. Beans
Frank N. Beans's picture

money talks

how much is the only question

hell, if they have to, they'll create a new ratings agency on the fly just to give out a good rating on Spain

that's pretty much what they did here


Mon, 11/05/2012 - 11:05 | Link to Comment MiltonFriedmans...
MiltonFriedmansNightmare's picture

Doing the work of God; saving the world, one failed nation at a time....

Mon, 11/05/2012 - 11:07 | Link to Comment Frozen IcQb
Frozen IcQb's picture

The thrust  (title) of this article is somewhat misplaced.

Blame his bad (tainted and corrupt) call rating and DBRS for sure. However, his CV is defendable.


Mon, 11/05/2012 - 11:08 | Link to Comment Broccoli
Broccoli's picture

As a thought experiment, imagine if other parts of society used the same logic the ECB uses:

Your GPA would equal your highest individual grade you ever earned no matter the other grades.

Mon, 11/05/2012 - 11:08 | Link to Comment debtor of last ...
debtor of last resort's picture

I did NOT expect the pile of shit could get this big. Unbelievable...

Mon, 11/05/2012 - 11:10 | Link to Comment Apocalicious
Apocalicious's picture

Bwahahaha! Ratings agencies! BWAHAHAHA!

Mon, 11/05/2012 - 11:10 | Link to Comment bania
bania's picture

Wow went to princeton

Mon, 11/05/2012 - 11:14 | Link to Comment Schmuck Raker
Schmuck Raker's picture

My New Year Resolution is to keep a list handy of all these "Bad Actors" as ZH brings them to my attention. And every night I shall pray to the Lord he doth smite them.



Mon, 11/05/2012 - 11:14 | Link to Comment Flounder
Flounder's picture

Damn Tyler! How do you get this stuff?

Their headline does say the trend is negative, so y'know things could get worse.

DBRS Downgrades Spain’s Rating to A (low) with Negative Trend Aug 8, 2012

Good credit quality. The capacity for the payment of financial obligations is substantial, but of
lesser credit quality than AA. May be vulnerable to future events, but qualifying negative factors
are considered manageable.

Mon, 11/05/2012 - 11:15 | Link to Comment Wakanda
Wakanda's picture

French major at Reed?

"Je suis un sac de merde couche.  Double mon bonus ou autre..."


Mon, 11/05/2012 - 11:16 | Link to Comment Sleepless Knight
Sleepless Knight's picture

It will take forever to crash this system - but when it does all of the assholes in charge will just vanish - they will all quit, disappear and let the destrution begin. Thats how you know it REALLY has begun.

Mon, 11/05/2012 - 11:27 | Link to Comment ziggy59
ziggy59's picture

Actually they get recycled for the next con.
-Dept. Of Global Grifters

Mon, 11/05/2012 - 11:19 | Link to Comment jubber
jubber's picture


Mon, 11/05/2012 - 11:24 | Link to Comment ziggy59
ziggy59's picture

The problem is, they are ALL in bed together, yet it is US, the people getting phukt

Just an observation

Mon, 11/05/2012 - 11:24 | Link to Comment NoDebt
NoDebt's picture

I'm starting my own ratings agency. 

We'll be headquartered in the Dominican Republic, flying a Belgian flag and registered in Hong Kong.  You can have any rating you want on any debt issue.  Just a matter of how much you're willing to pay for it.

Mon, 11/05/2012 - 11:28 | Link to Comment Village Smithy
Village Smithy's picture

Seems to me that Mark Carney is between the proverbial rock and hard place. His duties as governor of the Bank of Canada surely include looking in on outlying and suspicious ratings issued by Canadian bond rating agencies. His duties as Chairman of the G20's Financial Stability Board most certainly include maintaining the global Ponzi regime. Your move Mr. governor/Chairman.

Mon, 11/05/2012 - 11:48 | Link to Comment Poetic injustice
Poetic injustice's picture

Mark Carney: No worries, Village Smithy. We consulted with other countries and see that best action would be to sell at least half of gold we have. If you don't mind, I am already editing my LinedIn profile to point out my achievement.

Mon, 11/05/2012 - 12:22 | Link to Comment PontifexMaximus
PontifexMaximus's picture

I thought mafia does exist only in southern europe, but probably they call it in another way elsewhere

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