Bank Downgrade Forward Calendar

Tyler Durden's picture

A major potential negative catalyst for financials globally is rapidly approaching as 114 banks are on review-for-downgrade by Moody's across 16 countries. Why do we care so much about ratings given their historical credibility? Ask James 'Jimmy-boy' Gorman of Morgan Stanley who is currently begging cap-in-hand to Moodys not to downgrade his empire bank, since he knows (and so it seems does the CDS market) that, as the FT notes, a downgrade could also force the bank to provide additional collateral to back its vast derivatives business - where it acts as one of the largest counterparties. In Europe, the fun heats up in the next few weeks as first Italian banks (4/16), then Spanish banks (4/23) and then Austrian (4/30) face from 1 to 4 notch downgrades and the potential to lose their short-term (funding-/CP-related) Prime-1 top rating, implicitly raising funding costs (and liquidity concerns) even further.



and potentially even more serious, banks that face loss of P-1 short-term rating...


Source: (ironically) Morgan Stanley

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suckerfishzilla's picture

Global governance wouldn't be bad.  So long as we are the ones governing. 

Schmuck Raker's picture

Define 'we'.

I'm not partial to having someone named Suckerfishzilla running things, for example.

Piranhanoia's picture

What it's platform?  No one ever heard of Milton V. Glorfab either.

JPM Hater001's picture

Salt water mostly.  goes well with pineapple.

tempo's picture

HARP2 encourages borrowers with low credit scores, no assets, and underwater mortgages to refinance at record low rates. Only in fantancy land we call America.

FlyoverCountrySchmuck's picture

Except that when 'Bank-added requirements" are calculated in, NO ONE IS REALLY GETTING REFINACNED by these amazing propoganda programs!

vmromk's picture

Bernanke, put on your Superman costume and save your fellow CRIMINAL bankers.

All you pieces of shit belong in prison.

He_Who Carried The Sun's picture

Gold traded at $1,631.90 by 11:07 a.m. today, for an annual gain of 4.2 percent. That compares with a 6.6 percent jump in the Standard & Poor’s GSCI gauge of 24 raw materials and a 9.7 percent increase in the MSCI All-Country World Index of equities. Treasuries lost 1.4 percent.

Vince Clortho's picture

Not to worry.  The Bearded Crusader is ready to leap into action and save the world (again) at a moments notice, or even less because of his super-printing-powers.

williambanzai7's picture

The mother of AIGs...Morganzilla,

His Dudeness's picture

Mr. Banzai,

It is good to be 'out' and able to continue the inanity where we left off!!!!!!

The Dude...

JW n FL's picture



short the banks who fund Rio Tinto and Anglo American!

Black Power takes Mines from Whitey!

Kill, Kill, Kill the White Man! Or just take his Billions invested! And his Gold from him! That’s worse than death for Wall Street! Time to get some Private contractors to go clean up this mess.. Before it goes public and the Whole World is Watching! LOL!!

Minister Saviour Kasukuwere said in a statement that all companies that did not meet a late 2011 deadline to submit proposals to cede a controlling stake to blacks have forfeited 51 percent of their shareholdings and are now "deemed to be owned by the state."

Zimbabwe has large Australian, Canadian and South African mining interests — including giants Rio Tinto, Canadile and Anglo American — and with scores of small white-owned gold mines.  <--- try this MashPedia out.. <--- try this MashPedia out.. this could go places depending on the depth built in to the information communicated!


And!! Let us Not! forget Anglo America Mining and Rio Tinto have other issues in South America!


And!! Let us NOT! forget Anglo American Mining and Rio Tinto have other issues in Alaska / Canada!!

are you short mining stocks?


WAMO556's picture

No! but companies like SANDLINE may get the private security contracts that you were talking about. Gotta have physical security.

smiler03's picture

What an amazing qualification to acquire...sounds ideal if you want to work for "the other side"... 

Master in Terrorism and Security
WAMO556's picture

I think that I remember some smart guy saying that one banks assets were another banks liabiliities. There probably should be a whole buncha more banks on the list - just saying.

jcaz's picture

That's how it all ends-  margin calls....

Belarusian Bull's picture

What kind of collateral do they usually use for derivatives?

Stoploss's picture

Shit, were going to need total foam encasement inside the thick golden covered outer shell, crash helmets aint gonna work this time.

Straying from the flock's picture

Here is what I just told my nearest and dearest:

Please take a moment and read my ranting.

suckerfishzilla's picture

I got so many mercury dimes it's not even funny.

Dr. Engali's picture

You know a couple of those mercury dimes will buy you a gallon of gas just like they would have in the 60s....just saying..

hardcleareye's picture

I believe that if things get that bad they will not only take your printed currency but anything else of value, including gold, silver, land and even your life......

Straying from the flock's picture

That may very well be the case, but they will get a fight from me. 

DoChenRollingBearing's picture

+ 1  Very nice rant

I ranted earlier to those of my nearest and dearest, but few listenend and the end has not yet happened.  So, I have given up trying to convince others I personally know to prepare.  They either do not know or do not care or just don't want to think about a catastrophe.

Dr. Engali's picture

Coming to a checkpoint near you..Homeland secrity is buying bullet resitance booths in addition to their 450 million rounds of ammo:

hardcleareye's picture

"The purpose behind the bullet proof booths is unknown, but the DHS has publicly announced that it plans to increase the number of unannounced checkpoints manned by TSA VIPR teams and other federal agents beyond the 9300 that were set up last year alone."

I go thru these (choose your vulgar word) check points at least twice a month, and now they are going to be increasing them???????  and dragging along little booths!!!!! 

I am having a hard time understanding this.... I believe I am suffering from "normalcy bias". <sarc>

hardcleareye's picture

Source: (ironically) Morgan Stanley


Did I miss it? I didn't see them on the list of down grades. 

Nothing To See Here's picture

Hey, it's not like it's gonna be Moody's who'll call down the banks first...

SheepDog-One's picture

I dont really see how bank or any other downgrades are relevant. Unless the play is to buy things that get downgraded because downgrades seem to be totaly meaningless and a go-ahead to double in valuation.

banksterhater's picture

Mothaphuckr Bernanke took $1.5 TRILLION(1/2) of CRE loans off MOTHAPHUCKA BANKSTERS BALANCE SHEETS and CRE fell 40%, it's all marked 100% and the MOTHAPHUCKAS got 2 years extension but now this TOXIC WASTE IS COMING DUE 2012-13, WHERE IS THE WASTEDUMP?

Tsar Pointless's picture

Here is the physical address:

The Department of the Treasury
Office of the Treasurer
1500 Pennsylvania Avenue, NW
Room 2134
Washington, DC 20220
Fax: (202) 622-6464

fonzannoon's picture

They should start downgrading the miners

Al Huxley's picture

They're already all rated 'Strong Sell' (gold miners).  Rationale being that they're currently doubling profits and sitting on large amount of cash, and, as this is too crazy to believe, the only logical conclusion is that it's an anomaly that can't last, so the best thing to do is 'sell now while the gettin's good', before they go to zero (along with gold, apparently).  Seriously, I was reading an article that was quoting analyst ratings for producing gold companies, and this was pretty much their 'logic'.

Piranhanoia's picture

Except that no one from an ivy league school is allowed to be included in the list. So after adding the ivy covered wallets;

"90% of the people on Wall Street are psychopaths."

junkyardjack's picture

Unless its an Upgrade forward calendar

Tsar Pointless's picture

Downgrades, shmowngrades.

Facebook has chosen the NASCRACK as its exchange when it goes public in May.

So, I am sorry folks, all news points to "Bullish" for this pointless Tsar.

dumpster's picture

moodys a political football  and big bank lap dog

still need their marching orders ,,


gatorengineer's picture

where are the US cranks I mean banks?

SheepDog-One's picture

Boy it sure is quiet around the market world today. 

Seize Mars's picture

Tommy Corman?

Is that Kapa'a, or Kapa'a'a !?

Vince Clortho's picture

Don't see anything on that list that rates better than a D- .

Great Depression Trader's picture

Global cyclical expansion continues, 2 to 4 yrs until the next down turn. NOMINAL GDP TARGETING kicks ass!!

CClarity's picture

Only Banco Popular expected to hold onto its current rating.  Anyone else think that is bizarre?