Moody's Hammer To Fall At 4 PM

Tyler Durden's picture

From Bloomberg citing CNBC, which apparently is where Moody's leaked all its data


So... this leaves Morgan Stanley with the dreaded 3 notch cut which automatically springs up to $9.6 billion margin calls and memories of AIG? Assume crash positions.

Oh, and for our Canadian friends:


Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Temporalist's picture

Airlines tell you to put your head between your legs because it snaps your neck faster upon impact.


Awesome leak.  Surely there were no SEC violations here. Wait, what's the SEC? My bad. 

FlyoverCountrySchmuck's picture

Sure explains the huge sell-off in Gold today, doesn't it.

Somebody has to cover some pretty huge margins, it seems.

ZerOhead's picture

In February Moody's said U.S. bank Morgan Stanley and Swiss banks UBS (UBSN.VX) and Credit Suisse (CSGN.VX) could be cut by up to three notches.

There could be cuts of two notches for Barclays (BARC.L), BNP Paribas (BNPP.PA), Citigroup (C.N), Credit Agricole (CAGR.PA), Deutsche Bank (DBKGn.DE), Goldman Sachs (GS.N), HSBC Holdings (HSBA.L), J.P.Morgan (JPM.N) and Royal Bank of Canada (RY.TO).

Moody's has said there could be one notch downgrades for Bank of America (BAC.N), Royal Bank of Scotland (RBS.L) and Societe Generale (SOGN.PA).

MonsterBox's picture

Why are these "rating agencies" allowed to do this?  Isn't there some kind of Executive Order prohibiting sheeple panic and bank runs?

Drilling on GS, BoA, JPM, foreign countries banksters... Seriously....Moody's et al are lucky to still be breathing....

El Viejo's picture

Correct me if I'm wrong, but institutional investors will have to respond in some cases. No??

HoofHearted's picture

couldn't happen to more deserving, banks...

Dr. Richard Head's picture

Cash on hand?  Check

Silver/Gold on hand?  Check

Depends?  Check


Alea Iactaest's picture

Haters gonna hate: MS up 54c AH right now...

TruthInSunshine's picture

Temporalist said:


Airlines tell you to put your head between your legs because it snaps your neck faster upon impact.



Tyler Durden:  [pointing at an emergency instruction manual on a plane] You know why they put oxygen masks on planes?

Narrator:    So you can breath.

Tyler Durden:    Oxygen gets you high. In a catastrophic emergency, you're taking giant panicked breaths. Suddenly you become euphoric, docile. You accept your fate. It's all right here. Emergency water landing - 600 miles an hour. Blank faces, calm as Hindu cows.

ZerOhead's picture

Business must be slow for them... and I guess some of the aforementioned banks didn't want to get shaken down and refused to pay up.

Now we get to find out which ones... can't say they weren't warned...

Dr. Richard Head's picture

And the sheep with deposits at these banks still stay with these banks, oblivious to the liability side of the ledger far outweighing the asset side.  You think those folks would have listened to the warnings.  Kind of hard to hear the warnings over Miley Cyrus' ass checks hanging out I guess.

MarsInScorpio's picture

Sell that gold! Drop that price! I'll buy - I'll buy!!


knukles's picture

And they (along with S&P, et al) haven't even yet begun to fuck over the EU/EBC.

What an opportunity to set the ratings process "right"
The Europeans just cut off thier own dicks.

Gonna need lots of popcorn, honey.

GCT's picture

I was thinking the same thing knuckles when the euro politicians are now going to rate their own bonds. 

jus_lite_reading's picture

The world is ONE catastrophe from total economic meltdown and no amount of printing will stop it...

Margin calls on the nines!!! 

ugmug's picture

Unless porn sites report financial news then the SEC employees will never know what's happening from day to day. 

Dr. Richard Head's picture

I would bet the google trends of search terms originating from the SEC would be dealing with Octomom and the sort.

Troll Magnet's picture

Surely there were no SEC violations here. Wait, what's the SEC? My bad. 

It's the South Eastern Conference, you dummy!  Come.On!  Don't you watch TV?

Divided States of America's picture

Canadian Bank?? Nice...Must be CIBC or Bank of Montreal

TruthInSunshine's picture

Bernanke hasn't delivered more Krugmanrands (i.e. massive amounts of new, additional debt-derived fiat, to be deposited into the TBTF, wards of the taxpayers banks & Wall Street), yet, so the TBTF taxpayer teat-sucking parastic drain financial players have  rigged this to tank in a big way so they can prime the pump again.

It's 2008's, Hank Paulson's "tanks in the streets & martial law if Congress doesn't give me a blank check and The Bernank a green light, bitchez," redux, deja vu, v2.0.

In other words, they're going to throw a big, loud tantrum, tanking 401(k)s, until they get what they want.



Plymster's picture

I guess we get to find out if Jamie Dimon was correct about a TBTF bank being able to fail...

GCT's picture

Truth I may be wrong on this but the only reason the Fed is not doing QE right now is because of the elections.  If the fed starts QE too early commodities will be sky high during the election period.  Look for it in September or October.  This administration can then get on the MSM and speak about how he save the USA and bam he is reelected.

Timing is everything to politicians.

canadiandollar's picture

but.....but... i was told our banks were "the best in the world"? you mean i was lied to????? (sarc)

i believe CIBC was one of the banks here that was the largest holder of ABCP (or at least the most leveraged). i would guess that is the bank in the crosshairs.

Plymster's picture

So rather than say, "Shit meets Fan", you choose to go with the more PC, "S meets Fan".

Then you say "Fuck you MS!".

Crap-boobs-crap!  You give cursing a bad name!  ;-P

camaro68ss's picture

yeah i dont know what i was thinking. lol

American34's picture

Margin calls should be renamed Euro Calls!

beaker's picture

Notice how the big gold hit days come when one of these banks have collateral calls?  Last time was when the JPM trade was first in the news.

Dr. Richard Head's picture

Naked shorting I am sure.  I can't imagine these banks actually have any assets to speak of. 

Negative Reserve Banking is gonna getcha.

Silver Bug's picture

90% of the banks out there should be junk status. If not higher.

vast-dom's picture

Shit splatters fan! Blades and shit go flying!

battle axe's picture

I guess Gorman from Morgan Stanley, didn't blow Moody's good enough. 


Another 5 billion dollar rubber ducky bathtub deal?

johngaltfla's picture

Maria B is pissed off. She must have turned old Warren Buffett down for a quickie in the elevator. She really wanted to cover this downgrade herself and not let the lose your money fast clowns do it.

SilverTree's picture

Drum-roll please!

EscapeKey's picture

All priced in already. Unless they are only downgraded 1 notch, then it's hugely bullish.

BurgundianRon's picture

PPT must've asked 'em to hold until after the bell.

Monkeyfister's picture

Yeah-- wouldn't want the Markets to flush entirely down the toilet today. Best to leave some for the second flush tomorrow morning.


Marginal Call's picture

Tomorrow is the ramp up on new QE rumors. 

Dr. Engali's picture

This is just a courtesy flush. The big one is coming.