Moody's Goes For Trifecta, Downgrades Citi Short-Term Rating Of Citi From Prime-1 To Prime-2

Tyler Durden's picture

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CaptFufflePants's picture

CITI is up on the news go figure.

SGS's picture

Long term debt affirmed SOLID



Ahmeexnal's picture

Moody's goes TRIFECAL.


TheFourthStooge-ing's picture

"Herro, wercome to Shitty Bank, tay your order prease?"


nope-1004's picture

I figured these would come around the time of a QE announcement.  It will make more sense tomorrow, but for now these downgrades are well timed, dontchya think?

I bet Benocide eludes to these downgrades as further rational.


jdelano's picture

I think the opposite.  This is a retaliation move, a middle finger driven into the wound that OT will open in the banks' long term prospects.  Moody's cleary sending an FU to Buffet/Obama. 

NotApplicable's picture

Retaliation infers opposition. Given this is the political economy we're talking about, I no more believe in the existence of opposition there than I do with professional wrestling.

It's all meant to convey a facade of integrity, but it isn't that hard to see through it. This is true even IF, as you say, Moody's is sending an FU to Obama. It's just another page in the script, and Moody's gets to play bad cop, to balance out Bernanke's good cop routine.

Otherwise, reality might appear unbalanced and incoherent.

NotApplicable's picture

Absolutely. As I mentioned in the last thread, it's all about manufacturing consent to create a facade of a mandate for action.

Because, as we all know... wait for it...


Da55id's picture

Doesn't Berkshire own a big chunk of Moody's? Announce bad news that will immediately be eclipsed by later news and gets it out of the way. Nice play. Play nice...

jdelano's picture

Warren Buffet had this to say on Moody’s:

……the company “eagerly sought stupid assumptions that enabled them to do clever mathematics.” As to why he didn’t exert his influence, he said: “I don’t think I’ve ever made a call to Moody’s. We don’t tell Burlington Northern what safety procedures to put in or AmEx who they should lend to. When we own stock, we are not there to try and change people……

covert's picture

all corp banks are doomed to fail, it's the nature of banking and govt doesn't help. the fundamentials always prevail.


LongBalls's picture

Bank stocks are going to get a steroid shot today. They are going to be forced to take the deposits at the Fed. and lend it/invest it in pursuit of a larger yield. The market will view this as bullish.

Shocker's picture

The fecta is going to continue on. Without people spending money getting loans for cars/houses... Banks are going to continue to be under pressure. Really no way around that


depression's picture

add to this the flatening yield curve

a one - two punch to the gut

Larry Darrell's picture

Don't forget the Super High Five on the last race of the day.  It has a carryover, kinda like the debt the government continually has to roll.

junkyardjack's picture

The market appears to be getting more and more excited for QE3 with each announcement.  

stant's picture

open season on buffet and banks

IQ 145's picture

Look at POT on the NYSE it's going to rally 15%+ in the next couple of months.

DogSlime's picture

I love the smell of a triple bank downgrade in the morning - smells like.... DEEEP SHIIITTTTT!!!

LongBalls's picture

A.K.A..... Bankers to Moody's, "Hey guys we really need this cash" how can you help us slip you some dough?

No One's picture

So, when is Moody's going to man up and downgrade America?

lolmao500's picture

Next : downgrading America, France and the UK.

Mr Lennon Hendrix's picture

Sacrificing goat after goat on the alter of the Temple.  Ah yes, the equinox.  And if anyone does not think there is a method to the pagan Illuminatti's madness, you may wish to read from the real history books. 

ReallySparky's picture

Mr. Hendrix there will be none of that conspiracy stuff around here, there is no audience for it.   /sarcasm

Mr Lennon Hendrix's picture

Oh right.  Bernanke is a schoolboy and is just like all other Economic Professors [cough cough].  He doesn't pander to the wants and needs of the elite [cough].  He is just using the book he wrote because he believes in it, not because he is a shareholder for the Bank of International Settlements [cough.....cough!].

12ToothAssassin's picture

Autumnal Equinox is on Friday, September 23, 2011

Mr Lennon Hendrix's picture

Yeah, yeah, I know, that is what my calender says too, but really, the calender is so messed up at this point that we don't really know what we are talking about.  We should have been using the moon calender for the last 2000 years if we had wanted to be accurate.  Man, now that I think about it, the Mayan calender may have read completely differently, huh?


ReallySparky's picture

Does anyone else here find it suspisious that these rating changes are coming out prior to the FOMC?  I say the Bernake suprises everyone.

DropOutEconomist's picture

Buffett is a large shareholder in Moody's.

GeneMarchbanks's picture

WTF is going on at Moody's? Did Zandi get fired? That guy blows...

TradingJoe's picture

Too little time to make a difference now! These "downgrades" should have come a lot earlier, The Benster cannot react on these ones now, not good for his "reputation"! NO QE! Just some "tough talk" and that's it!

NotApplicable's picture

LOL, you really think he didn't know about them?

Remember, the reaction is the action.

Zymurguy's picture

No matter what happens with the downgrades or the the next QE, you can be assured the common man will be fecta'd.

tallen's picture

There's something about watching ShittyGroup's stock tank that makes me feel so warm inside

lolmao500's picture

Time for China to cut the swap lines to the US.

Lester's picture

Evidently todays news, domestic and foreign just goes to show that $16 Trillion in secret funding just won't go as far as it used to.

Buddy can you spare a couple Quadrillion?

azzhatter's picture

Dick Bove runs in to take another dump.