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Vampire Squid Downgrades Margin Stanley From Conviction Buy To Netural, Warns On Counterparty Risk, Lowers PT From $20 To $16
GS just did what it does best: pulled the rug from under its most troubled peer: "We are downgrading MS to Neutral and removing shares from the America’s Conviction List. Since being added to the Americas Conviction List on January 29, 2012, MS shares are down 27% vs. flat for the S&P 500. Over the past 12 months, MS shares are down 39% vs. the S&P 500 up 4%. When we added shares to the Conviction List, we noted that MS had addressed a number of legacy issues including (1) the conversion of the MUFG preferred stock to common to bolster common equity capital ratios, (2) elimination of the CIC preferred dividend, (3) removal of the MBIA relationship//hedge overhang, (4) write-down of legacy real estate assets, (5) elimination of non-core asset management businesses, and (6) near-completion of the integration of Smith Barney and Morgan Stanley Wealth Management. While that all still holds true today and should be beneficial towards long-term “normalized” returns, we believe several capital market overhangs will reduce out-year earnings visibility and cap near-term outperformance. While too soon to tell how counterparties will react to a new capital market ratings distribution post-Moody’s, this cycle has proven that banks with the largest increase in funding spreads have generally lost fixed income trading market share. In addition, with a number of global macro uncertainties likely to weigh on capital markets activity for the foreseeable future, MS has outsized exposure here as well....we are lowering our 12-month price target for MS to $16 (from $20) based on 0.6X TBV (from 0.7x) to reflect challenged near-term earnings power."
Capitalism at its best: kick 'em while they're down.
Goldman summary:
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Barbarians.....make way for the cannibals.
...another bailout in the making.
kick em while they're down, bitchez..
more than once if you can!
Ya think, GS took out a big short position before the 'timely' release?
They've had the big short position since the 'buy' recommendation.
How long till they do this to JPM? I'm giddy to know.
We all know that crap is king...
$5 say this flips to a strong buy in a few months. After they've covered their shorts and QE^5000 is mid stream.
It is a damn chessgame. MS transfering their derivites to MS bank where they are taxpayer insured and away from the HoldCo unit. Their pals in crime, downgrade them to accelerate the the 'banks' decline and trigger a second TBTF crises at MS.
Tell me this is not PLANNED, like over burgers and fine wine at the barbe in the Hamptons last weekend.
"Burgers and fine wine"? Not even banksters are that crass. Filets and fine wine, or burgers and craft beer.
Both of you are close....but I was serving those dirtbags, and if I remember, they ordered grilled Muppet with some Night Train to wash it down.
someone didn't get their cookies and milk i suspect.
Sharks eating sharks in a sea growing ever smaller,
flashing and slashing and crashing,
if the Fed does not throw some meat in there, they will rip at each other's fins,
that is not my beautiful Times Square Office.
http://www.youtube.com/watch?v=c37huAUVJ1U
Lets be real, the Moody's downgrade was a yawn for the market, so now Goldman has to go after them. Goldman might want to look at their own exodus of partners and shitty business model. In the long run, I would pick MS over GS. Still a lot of people hate GS for the Bullshit they pulled in 08.
I wonder if they stand to make millions the same way they did when AIG went down?
Yes, the GS basement cleaner will be making millions in bonus $$$ on this deal, just like last time.
On the south so of Chicago I worked where there was a large warehouse full of rats. They'd set traps out but we hardly caught any. Then one day a trap was set and watched all day. When a rat was finally caught, it only took a few minutes for the other rats to devour the trapped rat.
I suspect GS is engaging in typical rodent behavior.
Even Bad Bad Leroy Brown eventually met his demise...
A Squid has to eat. Youm, youm, youm..... I know it will be a while, but I can't wait until The Squid has devoured everything and moves on to its farm of fattened gophers in Washington. I picture The Capital dome enveloped by The Squid, it reaching in the fractured dome, pulling out screaming pols, they being squeezed like grapes and fed to The Squids bloody beak.
Here we go - now it's getting ugly.
"Morgan downgrades Goldman to Full Retard."
A pox on their house to boot.
Now MS will have no choice to downgrade Goldman, and JPM will have to downgrade them both.
By the end of the day, if this spirals out of control, they may all be rated lower than Congress.
Not possible.
More importantly, will it matter (especially since they all own CONgress)? If it is paper, it is now junk.
Perhaps the government can learn from this, and get some good internicene squabbling going on - House downgrades Senate, DHS downgrades DOJ, VP downgrades himself...
You mean something like subpoenas and being held in contempt and asserting executive privilege?
Wake us, when someone actually goes to jail. Want to restore some market confidence? Hang John Corzine in Times Square. In the absence of any effective rule of laws or contracts. Possession is the law. Shut this whole shit-show down. All aspects of the government are out of control, especially since the "government" is nothing more than proxy for the banks and financial houses now.
I agree, but I believe this is going to drag on much longer than any of us want it to. Plan accordingly.
They -- Washington and Wall Street -- have locked themselves into a very stable system of mutual support that can't really be changed from the inside. Only some exogenous event (like, say, the collapse of the dollar) will induce change, and that's still potentially years away.
Brilliant. You should be a political analyst.
16$...
So 7 to 8$ is the real target :)
$4 sounds about right in dark pool zone.
Why argue... :)
YOU'RE RIGHT!
Goldman is talking about counterparty risk? Oh wait, that's right they own CONgress, the SEC, and the printing press.
Don't forget Treasury and State, among others.
Coming Soon. Morgan Stanley downgrades GS
These banks rateing each other...
http://www.deonandan.com/uploaded_images/tapthatassnl6-764929.jpg
And Gold R...............................
No Drops like a stone!
how do they even do this stuff with a straight face anymore? ...
because past experience has taught them that they can.
..."It's hard to play a gig in this town and keep a straight face..."
Shawn Mullins
That's funny. In you story you have a link to a previous ZH news report about a GS downgrade for Visa issued on Dec 17th 2010.
On that date the Visa shared price was $66.90. One year later it was $101.53.
Go figure...
As per the script, gold and silver are the first items thrown overboard on the news.
Dog eat Dog world and Margin Stanley is wearing milkBone panties.
Edible panties, mmmmmm, so it is a win-win? Sorry lizzy could not resist.
Dimon must have broken some fraternity rule. More to come, am sure of that.
Fasten your seatbelts and Hang on to you cocktails, it is going to be a bumby week.
I wonder how many of MS HNW clients were emailed a copy of the release today?
Oops... meant for blind faith comment above..... You meant James Gorman!
Run PotMeetKeetle.bat
/Open Sarc
IF CounterParty.Risk = Squid goto RiskID
ElseIF
CounterParty.Rsk = MS goto RiskID
EndIf
RiskID:
CounterParty.Risk = ME
/Close Sarc
Nice, they are fucking each other now.
Conviction List or Convict List?
MS was on Goldman's "America’s Conviction List"?
Shouldn't it be called "America’s Should Be Convicted List"?
"pile on the rabbit, pile on the rabbit!"
"kick em when their up, kick em when their down....."
Dirty laundry.....
Way overdue...
but you know GS has to FUCK THE MUPPETS FIRST BY PUTTING IT ON THE GOOD LIST TO START FROM...
LOSE 37%....THEN DOWNGRADE....classic shit....
roasted muppet with a side of fabre beans!
As long as they keep paying those policians, they're golden: http://www.opensecrets.org/index.php
About time they eat their own. http://www.youtube.com/watch?v=8iyDZBAFxKE&feature=related
Leeeeeeeeeroy Jenkins!
The Squid analysts need to cut back on the bath salts.
They all will be the last to go, but go they will, along with reserve currency status for the dollar. When the equivalent of wooden stakes are pounded through the heart of these criminal institutions and I mean the whole financial complex life will start coming back to the real economy. Americans of the future will look back at this time and and wonder in absolute amazement how the current stranglehold these entities have on 330 million people could ever have been tolerated.
Does anyone know how to get a copy of a report issued today by Goldman on Suntech Power (STP)?