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Double Tap For Octogenarian Of Omaha: Wells Downgraded From A1 To A2
Buffett tells Obama how to tax the country and all he gets is this lousy shirt that says "I got double penetrated by Moody's on Central Planning day"
Moody's Investors Service downgraded the long-term ratings of Wells Fargo & Company(holding company senior debt to
A2 from A1) and of its major subsidiaries including Wells Fargo Bank N.A.
(rating on the bank for deposits to Aa3 from Aa2). The actions conclude a review for downgrade announced on June 2, 2011. The outlook on the long-term senior ratings remains negative.
The downgrades result from a decrease in the probability that the US government would support the bank, if needed. Moody's believes that the government is likely to continue to provide some level of support to systemically important financial institutions. However, it is also more likely now than during the financial crisis to allow a large bank to fail should it become financially troubled, as the risks of contagion become less acute. Moody's is therefore lowering the amount of support it incorporates into Wells Fargo's ratings to levels reflected prior to the crisis.
The ratings affected are as follows:
Wells Fargo & Company: Moody's downgraded the supported long-term senior debt rating to A2 from A1. The Prime-1 short-term rating was affirmed as was the unsupported hybrid ratings issued by or guaranteed by Wells Fargo & Company. (Junior subordinated debt rated at Baa1 (hyb)). The holding company senior debt ratings now incorporate one notch of uplift due to systemic support, down from two notches previously. The outlook on the supported ratings is negative and the outlook on the unsupported hybrid ratings is stable.
Wells Fargo Bank N.A.: Moody's downgraded the long-term bank deposit and senior bank debt ratings to Aa3 from Aa2 and the short-term Prime 1 ratings was affirmed. The bank financial strength rating (BFSR) of C+ was also affirmed, and the banks' corresponding baseline credit assessment
(BCA) or unsupported rating, remains unchanged at A2. The bank deposit and senior debt ratings now incorporate two notches of uplift due to systemic support, down from three notches previously. Moody's also affirmed the hybrid rating guaranteed by Wells Fargo Bank N.A. at A3 (hyb). The outlook on the supported ratings is negative and the rating on the unsupported ratings is stable.
Please see the link for a full list of rating actions.
Moody's will publish separate press releases on other institutions covered by the reviewed announced on June 2, 2011.
RATINGS RATIONALE
Moody's continues to see the probability of support for highly interconnected, systemically important institutions as very high, although that probability is lower than it was during the financial crisis. During the crisis, the risk of contagion to the US and global financial system from a major bank failure was viewed as too great to allow such a failure to occur -- a view borne out in the aftermath of the Lehman failure. This led the government to extend an unusual level of support to weakened financial institutions and Moody's to incorporate the expectations of such support in its ratings. Now, having moved beyond the depths of the crisis, Moody's believes there is an increased possibility that the government might allow a large financial institution to fail, taking the view that contagion could be limited.
Moody's decision to assign a negative rating outlook reflects the possibility it may further reduce its systemic support assumptions in the future as a consequence of the process set in motion by the enactment of the Dodd-Frank Act.. Under the rules recently finalized by the FDIC, the orderly liquidation authority included in Dodd-Frank demonstrates a clear intent to impose losses on bondholders in the event that a systemically important bank such as Wells Fargo was nearing failure. If fully implemented, the provisions of Dodd-Frank could further lower systemic risk by reducing interconnectedness among large institutions and could further strengthen regulators' abilities to resolve such firms.
However, the final form of several critical components of Dodd-Frank intended to reduce such interconnectedness, such as resolution plans or changes to the over-the-counter derivatives market, are still pending.
There is also no global process yet in place whereby regulators could resolve a global financial company such as Wells Fargo in an orderly fashion. As a result, Moody's believes that it would be very difficult for the US government to utilize the orderly liquidation authority to resolve a systemically important bank without a disruption of the marketplace and the broader economy.
The principal methodologies used in rating were "Bank Financial Strength
Ratings: Global Methodology" published in February 2007, "Incorporation of Joint-Default Analysis into Moody's Bank Ratings: A Refined Methodology" published in March 2007, and "Moody's Guidelines for Rating Bank Hybrid Securities and Subordinated Debt" published in November 2009.
Please see the Credit Policy page on www.moodys.com for a copy of these methodologies.
Wells Fargo is headquartered in San Francisco. Its reported assets were
$1,260 billion at June 30, 2011.
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Come on do something bold. Be honest and downgrade them to junk. Doesn't Warren own Moody's ?
Slooooow progress.
Yes, Mr Potter owns Moody's
Keep in mind that Grandpa Warren has the magical ability to grant Quadruple A ratings all by himself! These "official" downgrades are merely a transitory annoyance for the Oracle.
The worms are all turning on one another. The rush to gold and silver is on.
not yet. I think we haven't seen "the rush."
Tickets to this play have a different plot for each seat.
Plenty of people are still watching "The Stage" for the show...
The double tap...priceless.
www.youtube.com/watch?v=H5JDNCeDuQw
The market continues to levitate waiting on 1 man!
Buffet is a moron.
His head will soon fall into a basket.
As Raymond Chandler would say,
"Two in the hat."
A fellow Raymond Chandler fan. I admire your taste in literature, sir.
Double Tap?
One in the pink, two in the stink?
Tackled by our own man!
Relax Warren, you've got a tax in your name...
BUFFETT TAX!
BWAHAHAHA
Old relic....should be put down already.
here's to wishing that moody's and s&p are to banks what the gold pool and the current bullion banks are to gold and silver. may the banks enjoy the fish line drop.
Buffett tells Obama how to tax the country and all he gets is this lousy shirt that says "I got double penetrated by Moody's on Central Planning day"
I hope they didn't waste any lube on the old bastard.
I think they are going for the trifecta, making him waterproof.
Maybe Moody's has it in for Warren on account of him dumping their stock from his holdings. It's as bad as dumping a woman, I swear.
Repeat after me: Hell hath no fury like a ratings agency.
OH snap, the geezer takes one right up the kornhole!!
The evil old con man needs to have Nebraska korn kobs shoved up his rectal orifice.
the old DP.. priceless. Thx TD
Makes me wonder what Obama and Buffett were talking about on the phone a few weeks ago before the BAC investment. The Fed FTW!
Choice of lubes?
LMAO..double penetration...priceless
I wonder if Warren auditioned for that Ned Beatty part a long time ago?
Could see his old ass scrambling up a hill in his tighty whities.
"He gotta a real pretty mouth ain't he?"
pods
Squeal like a PIIG, gramps!
Was it really a double penetration or was it a dirty ass-to-mouth for old Warren?
A2M2M: ass to mouth to Munger
theres gonna be blood in that bathwater
and lots of pee.
And dying old-man skin and.
"I got double penetrated by Moody's on Central Planning day"
First I did a spit take of my coffee when I read that it was so funny.
Then I imagined how that would look and lost my lunch.
Thanks Tyler....that's the way for me to give up caffeine and lose weight at the same time.
life is good! It's nice to see around the bullshit.
Have a heart attack Buffet!! You won't be missed!
Hey I just realized something. Five days ago was my one year anniversary at the hedge. No flowers no kiss my ass... nothing. Tyler I'm concerned that we are starting to drift. :)
The market reaction for WFC lasted about 4 minutes; it's now high on the day; good bargain available on BAC at $6.52.
A better bargin at .99 ha! I played C all the way down and picked up 5k at .99 this to will pass!
Is it odd that they're announcing these just minutes before the Fed announcement? Trying to bury them in larger news?
Manufacturing consent via TINA.
Perhaps it is that they are in the news so they can be used as an excuse to bailout more failures and do Bernankes favorite pastime...printing.
So, in reality, the ratings for the banks didn't fall, but faith in the "political will" to support them did.
Sounds like a setup for a political mandate to me. How many more minutes before Bennie takes the stage?
I guess as investors one can side with Buffett and choose not to bury a metal in the ground and instead invest in fraudulent govt. backed banks that rob taxpayers and customers.
What happens to the rules of space and time if Moody's downgrades itself?
Luv the DOUBLE PENETRATION
Hey Tyler keep them coming superb stuff!
Bad news comes in 3s. Still one more to go.next downgrade will be Berkshire itself.
And then it'll be more of a "2 to the chest and 1 to the head"
Dude, that is the funniest first sentence of anything I have read in a long time.
Buffet owns 13% of Moodys, and 2.8% of Wells Fargo.
With this downgrade of WF should come a drop in stock price.
Hey, Warren, BTFD...
The stock market has gone up since this announcement. Interesting behavior to watch people run into a burning building when they are not firemen.
The Barnacle of Omaha...
my name is WARREN and all I got is this lousy shirt that says:
"I got double penetrated by Moody's on Central Planning day"
lmfao ;)
I don't laugh out loud much, but I sure did with that one. Funny shit for sure!
The Oracle needs to merely involk hope and change... ya that should do it.
WFC currently up 1% on the news
Does anyone think the Octo Man wasn't positioned to profit off this Moody's announcement. I'm sure he's buying cheeseburgers and cherry cokes for the entire office today.
tyler, why if we live in a world of central planning would they allow moodys, fitch etc to down grade the banks? Im thinking they are trying to consolidate the banking industry even further. if they want a world currency and a strong world bank the fewer players the better. also consolidation also hides the losses even beter
There was an old phart called Buffit,
With an orifice so tight, 'twas a snug-fit,
'Till the banks came along
And plowed it so long
Now it's doubtful a bar-bell could stuff-it
There was an old phart called Buffit,
With an orifice so tight, 'twas a snug-fit,
'Till the banks came along
And plowed it so long
Now it's doubtful a bar-bell could stuff-it
Pulitzer material! ROTFL!
Not to sound sadistic, but I hope one of the penetrations came from a barbed-wire wrapped baseball bat!