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Egan-Jones Downgrades Goldman From AA To AA-

Tyler Durden's picture




 

Just out by the only rating agency that is even remotely credible.

Goldman Sachs Group Inc/The: EJR lowered AA to AA- (S&P: A) (GS)

Synopsis: Across the valley - GS recorded $2.96B in investing and lending losses and a $378M decline in IB revenues, totaling a $3.34B decline. Hence, the total loss of merely $393M is respectable. Furthermore, given the political pressure, now is not the time to show robust results. The major issues facing GS is the cost of complying with the Volker rule (look for some changes or exemptions from the proposed rule), changes in senior management (to appease Sen. Levin) and a still weak IB and trading environment. However, with the demise of most of its major competitors, GS benefits from the lack of competition, attractive LT trading opportunities, and various forms of federal government support. Other raters might take neg. actions.

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Tue, 10/18/2011 - 11:44 | 1785448 SheepDog-One
SheepDog-One's picture

'Gods work' not so profitable these days?

Tue, 10/18/2011 - 11:46 | 1785457 boom goes the d...
boom goes the dynamite's picture

do they still rule the world?  I think so, but not for long.

Tue, 10/18/2011 - 11:48 | 1785470 SheepDog-One
SheepDog-One's picture

Well at least it seems the 'Gods Rulers of the World' still have 'govt assistance' going for them...

Pretty bad when even 'The Chosen' have to fall back on Gubment Cheese to power their ministry.

Tue, 10/18/2011 - 11:45 | 1785452 TheLooza
TheLooza's picture

Mommy, why is the market melting up still?

Tue, 10/18/2011 - 11:51 | 1785479 kloot
kloot's picture

close your eyes hun, it will all end soon.

Tue, 10/18/2011 - 11:46 | 1785461 tekhneek
tekhneek's picture

And the stock melts up. 

Makes perfect sense.

Tue, 10/18/2011 - 11:46 | 1785462 barkingbill
barkingbill's picture

what is this incredibly violent melt up all about???

Tue, 10/18/2011 - 11:46 | 1785466 vote_libertaria...
vote_libertarian_party's picture

No wonder stocks shot up.

 

The banks look closer to disaster = buy buy buy

Tue, 10/18/2011 - 12:04 | 1785526 Cynical Sidney
Cynical Sidney's picture

krugmanomics at its finest: all hail disasters, very bullish indeed.

Tue, 10/18/2011 - 11:49 | 1785474 buzzsaw99
buzzsaw99's picture

Does a fascist backed bank holding company give a flying fig about its credit rating? I think not. Money for nothin', chicks for free.

Tue, 10/18/2011 - 11:51 | 1785480 CClarity
CClarity's picture

Only care cuz it was Egan-Jones. Bits of truth. If S&P, Moody's or Fitch not at all. Just advertising.

Tue, 10/18/2011 - 11:49 | 1785476 jdelano
jdelano's picture

Heheheh.  This is kinda fun.  Now Apple drops 4% after a solid earnings beat.   

Tue, 10/18/2011 - 11:53 | 1785486 Piranhanoia
Piranhanoia's picture

Too bad the rater is talking about a pig that wants to fly.  Every day becomes more humorous for those of us that find comfort in the black comedy that is our life.

Tue, 10/18/2011 - 11:55 | 1785505 BobPaulson
BobPaulson's picture

The skeptic paranoid side of me can't help but wonder how GS has planned this to coincide with the OWS activity. Sorry, perhaps too much of a coincidence, especially when MSM like the Globe and Mail today frontlining the story of GS's woes. Who knows what pig in a poke off balance sheet surprises the enacters of God's work have planned for after the next QE announcement, which they will have frontrun by about 10 minutes.

OK, maybe I'm too paranoid.

Tue, 10/18/2011 - 11:58 | 1785513 BobPaulson
BobPaulson's picture

Did I say 10 minutes? How anachronistically quaint of me. My apologies. Make that 10 microseconds.

Tue, 10/18/2011 - 12:03 | 1785523 Caviar Emptor
Caviar Emptor's picture

Careful they might downgrade them back! 

The whole of WS is playing humble these days. THey have an audience ya know. Now that they raked in billions in illicit bonuses and pumped their incomes while everyone else's was in a nosedive, they can afford to play poor for a while. 

I recently saw a bankster buying new suits at Emporio Armani. "Man of the people!" , he thought to himself. 

Tue, 10/18/2011 - 12:07 | 1785537 bernorange
bernorange's picture

Bwahaha...

"Downgrade me?  You can't downgrade me!  I am doing God's work!" - Blankfein

Tue, 10/18/2011 - 12:14 | 1785571 XitSam
XitSam's picture

I downgrade Goldman Sachs to fff- outlook negative.

Tue, 10/18/2011 - 12:16 | 1785582 bogey4
bogey4's picture

Egan Jones is so credible, that they downgrade GS to a rating higher than either Moody's or S&P! 

Clearly Goldman is in better shape than we thought...

Tue, 10/18/2011 - 13:27 | 1785882 JW n FL
JW n FL's picture

 

 

considering that Goldman has NO Trading Losses for how many quarters in a row.. but now that Occupy Wall Street is camped out a few blocks away.. there are loses! LOL!! please dont be a sheep and fall for this bullshit!

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