Joint Statement By The Fed, The FDIC, NCUA And OCC
Presenting the joint statement by The Fed, the FDIC, NCUA, OCC. In essence: the Fed tells S&P to go fornicate itself. And for your corresponding pleasure, below are the media contact of note: Federal Reserve Susan Stawick (202) 452-2955; FDIC David Barr (202) 898-6992; NCUA David Small (703) 518-6336; OCC Bryan Hubbard (202) 874-5307
Full release:
Board of Governors of the Federal Reserve System
Federal Deposit Insurance Corporation
National Credit Union Administration
Office of the Comptroller of the Currency
Agencies Issue Guidance on Federal Debt
Earlier today, Standard & Poor’s rating agency lowered the long-term rating of the U.S. government and federal agencies from AAA to AA+. With regard to this action, the federal banking agencies are providing the following guidance to banks, savings associations, credit unions, and bank and savings and loan holding companies (collectively, banking organizations)
For risk-based capital purposes, the risk weights for Treasury securities and other securities issued or guaranteed by the U.S. government, government agencies, and government-sponsored entities will not change. The treatment of Treasury securities and other securities issued or guaranteed by the U.S. government, government agencies, and government-sponsored entities under other federal banking agency regulations, including, for example, the Federal Reserve Board’s Regulation W, will also be unaffected.
### Media Contacts:
| Federal Reserve | Susan Stawick | (202) 452-2955 |
| FDIC | David Barr | (202) 898-6992 |
| NCUA | David Small | (703) 518-6336 |
| OCC | Bryan Hubbard | (202) 874-5307 |
FDIC-PR-133-2011
(6 votes)
»
- Login or register to post comments
- 12207 reads
- Printer-friendly version
- Send to friend
Similar Articles You Might Enjoy:
- In Which the Civic Conscience of Rating Agencies Becomes Evident (CMBS)
- As Treasury Continues Childish Sniping At S&P While Losing Credibility, Investors Lose Sleep
- There Goes The CMBS Neighborhood
- U.S. Should Downgrade S&P
- Goldman On What A US Downgrade Will Bring: Spoiler Alert - Nothing Good (And Why It Is Nothing "Like Japan")
I guess what they are implying is that there is no risk of not getting your money back in treasuries or anything else backed by the good faith of the U.S. government because they have printing press and they will print you up some pronto, no matter how worthless the dollar becomes.
this really IS the Fed telling SP to fuck off. There is no force or effect from this downgrade other than SP was making a political statement
How many grades are there under AA+? Methinks that S&P has more rounds left in the clip. How about Turbo Timmah and the Bernank?
Its A's all the way to the bottom...where there are B's...
Fiat is gold, gold is a barbarous relic
@TBT or not TBT
Time to get long barbarians.
http://cheezburger.com/View/5056663296
One of the very first taxes imposed by this country was the Whiskey Tax. At that time Whiskey was Money.
and turtles...
Silly!
-Feynman...
you no like turtles?
It's not so much lower ratings from S&P -- this downgrade was and is monumental -- as other ratings agencies like Moody's tagging along. Could put weeks' worth of pressure on. Fitch might stay put/certainly won't be first to tag along.
But nardshark. S&P moved the rotten camembert. I'm gonna roll watching Bob Pisani spin this. Can't hardly damn wait.
Our conclusion: "We still got 2 out of 3 ratings agencies working, and that ain't bad!"
http://www.youtube.com/watch?v=VepS-IyKOLE&feature=related
Not once has it been said..... anywhere .. It HAS NOT BEEN SAID ....get it.... NOT been said !!!!!!!!!
This is the Worlds Reserve Currency !!!!!!
It has been defiled, Fucked, screwed with, lost its Purity, raped, Buggered, slut fested, gang raped, cherry popped, defiled, debased, royally screwed with, NOT to be Trusted, Not to be tied with, a Whore and a plaything of unclean people.
Oh Baby you are in so Much trouble.
Thanks to ;;
Timmay
To big to fails
Helicopter wanker nankie
Wars
Lobbists (fuck I hate them)
Whats in it for me Congress
Wall st wally wankers.
and a crowd of a thousand hanger on blood sucking Tossers.
Welcome to HELL come Monday.
You are so Fucked!!!!!
You forgot to include yourself and all of us.
Amen brother. Things like this could never happen without the consent and apathy of the people. Americans seem to care for naught except for whether or not they can marry their gay lover Raul or what those zany kids on Jersey Shore are up to this week. We will pay dearly for that apathy at some point soon.
The good Germans let Hitler come to power.
The German people paid the price.
The good Americans have let the government take power.
We AMericans are going to pay the price.
The good Germans let Hitler come to power.
The German people paid the price.
The good Americans have let the government take power.
We AMericans are going to pay the price.
Sock puppet show. This is all planned.
Planned it is. They will say we restore the AAA rating if you raise taxes. Raising taxes they will.
Right. And guess where the money is.
I'll give you a hint: it ain't with the shrinking in ranks middle class and cutting SNAP, UE, SSI or Medicare is a non-starter in this political season.
It will come from the working middle class, or it won't come at all. You can't raise taxes on corporations and the wealthy, the Republicans would never go for that.
You can't raise taxes on corporations and the wealthy because the wealthy are rich enough to exploit loopholes and the corporations pass the taxes on to their customers. So, yes, it will come from the working middle class any way you look at it.
I thought Egypt was a profound event...
How appropiate to happen in the cradle of civilization there..
Hmmm.
Yup, Timeigh and the Bernanke are such f'n geniuses. It is all planned with in concert wih Soros and the rest of the Bilderberg. We are mere mortals they are teh genius. Yea ... lol. Timeh!
Oh, there most certainly is an effect that can extend past this communication.
Munis are tied to Ts. THEY may have to downgrade somewhat automatically and a great many of them will then become ineligible for purchase by pension funds and mutual funds.
Full release:
(translation)
Agencies Issue Guidance on Federal Debt
Earlier today, due to temporary insanity, some rogue analysts broke ranks with consensus estimates. With regard to this, listen carefully.
All you need to know is that everything is backed up by your Bernank. As such, there's no risk at all you will not get paid back. No risk. Please continue marking to fantasy. However, if you believe otherwise from this official statement, don't even think about trying to do something about it.
Flashback: Moody's Will Cut 7,000 Top-Rated Munis if US Downgraded, Reviewing More...
http://www.bloomberg.com/news/2011-07-13/california-may-sell-notes-before-federal-debt-limit-deadline-lockyer-says.html
The Fed may have some say with the banking community this directive this was aimed at but Despite what they may think they are not gods and the US is not the universe. I don't think Europe and China aren't going to kowtow to the Fed's wishes and we already know how little Russia thinks about the Bernank. This will provide the cover for them to do whatever they want in the currency wars and credit it to the downgrade. Monday we will see one way or the other.
If the rest of the world corners the United States, I have no problem believing the Unted Stated Elites will start a world war just to keep the pressure off them, and the banking system. Hell I would not be surprised they used nukes. After all the only country in history to ever use nukes is the U.S.
It takes 2 of 3... S&P actually covered their ass. Very Machiavellian if I do say.
It was definitely a f-you. But, I think The S&P downgrade is the start of something big.
First, they told Barney frank where he could shove his letter, yup, the gerbils will have some paper to play with now
Second, they are now off the hook for any future liabilities regarding USA debt ratings -- nothing politicians can use to dangle over their head
Three, they've taken a stand against the status quo. I think others will now soon follow. Government intimidation falls apart in the face of large numbers. We might be at the bottom of the rebellion s-curve
Time will tell, but this could be the 'next shot heard round the world'
all it takes is for a few cracks in the system
if im not mistaken, there are hard and fast repercussions - intra-American lending wont acknowledge the premium for the downgrade, but do you reckon china/european entities looking to lend to the US will accept repayment terms that arent reflective of an increased risk?
"There is no force or effect from this downgrade other than SP was making a political statement"
As far as US banks and other institutions under direct Fed cartel control, correct. As far as the rest of the world is concerned, incorrect.
Exactly right, IMHO. Just like the Tea Party Congressmembers were making their own "political statement" - - FRESHMEN all! Nice work, morons.
...but it's worse than that anyway.
The Treasury market can't really run into *serious* trouble until there's competition.
In principle, it's time for the Eurozone to launch it's "Euro-wide" bonds now. Or China.
There are no other players who'd have even the slightest hope in hell of doing any direct harm. There's noplace to roll $20 billion to overnight.
Dark pool trading is open all weekend with huge blocks sold bought and hedged. Ts may see a pop then drop because all these trades will hit the tape Monday at 3:59:59
How fucking stupid are you?
FED is playing the same game it did during GFC - suspending the Mark-to-Market and replacing it with Mark -to- Nothing. Then we will pretend to be blind and give you full dollars (as worthless as green toilet paper) for these 'no-faith' treasury notes as collaterals.
Why live in real world when the la-la banana land is a paradise!
What is the difference between a bankster and a counterfeiter?
BTW: Call the FDIC and ask them if they can guarantee the VALUE of your dollars. They will answer "No", as the FDIC only guarantees the dollar quantity, yet not the buying power as obviosly the Federal Reserve Note (dollar) devalues every year.
if prices and rates are bound to fluctuate, it seems the only way to promise no change in risk weights is if they already plan further easing
almost feels like the fed just showed it's hand
Is Turbo Tim going to keep his job still?
He's seeking asylum on a Caribbean island with his off shore bank account tonight.From Wikipedia:
"As a Treasury official, he helped manage multiple international crises of the 1990s in Brazil, Mexico, Indonesia, South Korea, and Thailand."
Anyone sensing a trend here? Perhaps he finally bag that big game he has always aspired to?
Stepping in to his private jet, Treasury Secretary Geithner waved his hand to the press corps that had gathered to cover the event. Before finally vanishing into the aircraft, Geithner chuckled to the onlookers "America, we hardly knew ye". No details were released on the the Treasury Secretary's destination nor any details about the trip.
The American taxpayer: the deadliest game of them ALL!!!
Ssaw on CNBC this early morning that the Politicians in Europe were too busy sipping cocktails on the Riveria, I laughed. If only they sipped more cocktails on the Riveria and stayed away from their best job of screwing the market up Royally.
No problem, don't listen to downgrade. Just stick finger in ear.
http://cache.abovethelaw.com/uploads/2010/11/Obama-Big-ear.jpeg
Let them eat iPod.....
Sweep the leg Johnny.....sweep the leg.
This is all well and good, but it's the insurance companies who'll be facing immediate problems from the downgrade -- not banking organizations.
Oh, they'll just raise our rates..
Ben is going to fire dollars out of his ass due this downgrade.
-Monday morning, debt rally
-Monday morning, stock rally.
Big Ben can fire them out of his arse all he wants as long as his helicopter is positioned right over my house, LOL
Lloyd Blankfein, is that you?
I think it shows the underlying pathology of the entire system. Notice that one of the orginators of the memo is the Board of Governors of the Federal Reserve. And what do they direct:
For risk-based capital purposes, the risk weights for Treasury securities and other securities issued or guaranteed by the U.S. government, government agencies, and government-sponsored entities will not change. The treatment of Treasury securities and other securities issued or guaranteed by the U.S. government, government agencies, and government-sponsored entities under other federal banking agency regulations, including, for example, the Federal Reserve Board’s Regulation W, will also be unaffected.
So, the purchases of Treasuries and other agency issues under QE1, QE1.5 and QE2 are to be considered as AAA rated on the books of financial institutions.
Now, consider, what do you think would be the effect on the Federal Reserve's own balance sheet if all those purchases were marked down from AAA to AA+?
Paging, Ron Paul. Paging, Ron Paul. Will Ron Paul please pick up the blue courtesy phone located througout the lobby.
Congress is conveniently on a 5 week recess when this all goes down, they will be back in town soon to address the BAC takedown though. Hopefully, Dr. Paul will address all this shit since he is chair of monetary policy subcommittee.
The only problem with the 5 week recess is that it is not 5 years. 90% of them are clueless how the real world works.
Ron Paul is leaving that post to run for prez
Yeah the fact they can go on so many recesses justifies even further the need to go back to a part time legislature. But Ron doesn't really fit their mold anyway.
You do realize they are not on vacation for 5 weeks, they are at home for 5 weeks. They should be home more ofthen in touch with their districts.
Well they are on recess, but it just goes to strengthen the argument for a part time legislature so they can become more familiar with their constituents by not having homes,(most all of them have homes there), in dc but in their districts and stay in a hotel when they are in dc. They only visit their districts, home is DC for most of those bastards/bitchez!
It's hilarious that last week, the threat of a downgrade was all doom and gloom from these folks, and tonight it has changed to, "Fuck S&P and their ratings we don't care."
insolvency is sooooo hot right now...
@XenoFrog
Post of the Night.
Good observation. +++++
Ionesco = theatre of the absurd.
FIRE economy = reality of the absurd.
Stages of Grief:
Stages of Denial:
Stage one denial is when a person truly does not believe that they have the disease of chemical addiction.
Stage two denial is when a person denies the need for ongoing sobriety support after treatment is completed.
Stage three denial is the denial of the need to be willing to go to any length in the recovery process.
THE KKK EMPIRE IS GOING DOWN, BITCHEZ!!
ZOMBIE LAND HERE WE COME!!!
A fiat AAA rating. How cool is that?
How cool would it be to pay your bills with money printed out of your printer?
Sure! We will give you back your money in US Dollars when the Bonds mature. Ben Bernanke has designed a new Bill just for Bond redemption’s.
http://www.milliondollarbillshop.com/libert17a.jpg
Who's on the front of that note, "Homey the Clown?"
Bonkers. Printing AAA takes more ink anyway. Efficiency is key in printing stuff on paper.
Bonkers. Printing AAA takes more ink anyway. Efficiency is key in printing stuff on paper.
AAA = 01000001 01000001 01000001
AA = 01000001 01000001
AA+ == 0x41 0x41 0x2b
I miss that old login " 777" I mis you telling us about you're family. we care about you.
THE KKK EMPIRE IS GOING DOWN, BITCHEZ!!
ZOMBIE LAND HERE WE COME!!!
Lies, damned lies, and Obama Administration lies.
The most honest administration, evarrrr.
Lying commie shitbags.
Finance fascism has no party alligience. Making it about Obama is a red herring.
It's all about Obama.
As if that redneck mccain would have been any different... lmao
When did I claim McCain isn't a lying commie shitbag?
The only difference is McCain lies about being a commie.
He actually revels in openly being a traitor shitbag to anyone stupid enough to trust him.
Another "if it ain't Ron (can't win, but runs anyway collecting dollars the whole time) Paul, it's commie" krishna!
Ronnie Paulie Paulie Krishna Krishna Paulie Paulie Ronnie...
That reminds me... Where's Dennis been? We know Grayson's toast, there's Dennis... Where's the Fed bashing Bush-Doctrine hating progressives when you need these bitchez? I'll throw 'em a few bucks. All things considered, we're getting off cheap with Ron and these guys. The truth alone is worth...
+1 in spirit cuz deep down you know you were harsh, and may have had a cocktail or two.
I say Paul/Kucinich (Kucinich/Paul?) 2012 - for the new Progressive Libertarian Alliance
you guys are funny - do you really believe that individuals affect this behemoth? that if you choose a different flavour, you get a different outcome?
still??
the system, the structure, the whole top heavy mirage of a nationstate is what needs to be seen as broken, false, finished - not the fucking figureheads.
it's over, it's been over for years, now it just has to die. . . in your minds.