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

  • MOODY’S TO UNVEIL BANK DOWNGRADE AT 4PM: CNBC
  • CNBC SAYS B OF A L-T DEBT RATING TO BE CUT BY 1 NOTCH BY MOODYS
  • CNBC SAYS CITI, JPM AND GS L-T DEBT RATING WILL BE CUT 2 NOTCH

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:

  • CNBC SAYS THE MOODY’S ACTION WILL INCLUDE 1 BANK FROM CANADA
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Thu, 06/21/2012 - 15:32 | 2548357 Temporalist
Temporalist's picture

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

Thu, 06/21/2012 - 15:33 | 2548363 camaro68ss
camaro68ss's picture

S meets Fan.

Fuck you MS!

Thu, 06/21/2012 - 15:36 | 2548388 SHEEPFUKKER
SHEEPFUKKER's picture

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

Thu, 06/21/2012 - 15:46 | 2548438 FlyoverCountryS...
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.

Thu, 06/21/2012 - 15:52 | 2548459 ZerOhead
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).

Thu, 06/21/2012 - 15:54 | 2548478 MonsterBox
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....

Thu, 06/21/2012 - 15:56 | 2548486 El Viejo
El Viejo's picture

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

Thu, 06/21/2012 - 15:58 | 2548503 HoofHearted
HoofHearted's picture

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

Thu, 06/21/2012 - 16:02 | 2548527 Dr. Richard Head
Dr. Richard Head's picture

Cash on hand?  Check

Silver/Gold on hand?  Check

Depends?  Check

 

Thu, 06/21/2012 - 16:04 | 2548536 Oro
Oro's picture

Anything?

Thu, 06/21/2012 - 17:26 | 2548838 Alea Iactaest
Alea Iactaest's picture

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

Thu, 06/21/2012 - 23:33 | 2549800 TruthInSunshine
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.

Thu, 06/21/2012 - 15:59 | 2548497 ZerOhead
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...

Thu, 06/21/2012 - 16:05 | 2548543 Dr. Richard Head
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.

Thu, 06/21/2012 - 16:31 | 2548664 NotApplicable
NotApplicable's picture

You mean I shouldn't have skipped that "news" story?

Oh... well, fine then!

http://www.dailymail.co.uk/tvshowbiz/article-2162461/Miley-Cyrus-bit-che...

Thu, 06/21/2012 - 16:58 | 2548770 catacl1sm
catacl1sm's picture

Nice find.

Thu, 06/21/2012 - 16:12 | 2548576 MarsInScorpio
MarsInScorpio's picture

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

-30-

Thu, 06/21/2012 - 15:46 | 2548441 knukles
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.

Thu, 06/21/2012 - 15:51 | 2548462 GCT
GCT's picture

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

Thu, 06/21/2012 - 15:59 | 2548508 jus_lite_reading
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!!! 

Thu, 06/21/2012 - 15:51 | 2548463 ugmug
ugmug's picture

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

Thu, 06/21/2012 - 16:07 | 2548553 Dr. Richard Head
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.

Thu, 06/21/2012 - 16:11 | 2548574 brooklynlou
brooklynlou's picture

Octomom ... Bullish!

Thu, 06/21/2012 - 17:01 | 2548784 dark pools of soros
Thu, 06/21/2012 - 16:05 | 2548532 Troll Magnet
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?

Thu, 06/21/2012 - 15:39 | 2548403 veyron
veyron's picture

so MS = Mega $hit?

Thu, 06/21/2012 - 15:41 | 2548417 Divided States ...
Divided States of America's picture

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

Thu, 06/21/2012 - 15:45 | 2548435 TruthInSunshine
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.

 

 

Thu, 06/21/2012 - 15:49 | 2548454 Plymster
Plymster's picture

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

Thu, 06/21/2012 - 15:55 | 2548475 GCT
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.

Thu, 06/21/2012 - 15:51 | 2548465 canadiandollar
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.

Thu, 06/21/2012 - 16:02 | 2548526 ZerOhead
ZerOhead's picture

Royal

Thu, 06/21/2012 - 15:45 | 2548437 Plymster
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

Thu, 06/21/2012 - 15:54 | 2548479 camaro68ss
camaro68ss's picture

yeah i dont know what i was thinking. lol

Thu, 06/21/2012 - 15:54 | 2548477 American34
American34's picture

Margin calls should be renamed Euro Calls!

Thu, 06/21/2012 - 15:56 | 2548489 beaker
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.

Thu, 06/21/2012 - 16:09 | 2548566 Dr. Richard Head
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.

Thu, 06/21/2012 - 16:41 | 2548709 Silver Bug
Silver Bug's picture

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

 

http://jimrickards.blogspot.ca/

Thu, 06/21/2012 - 17:07 | 2548797 vast-dom
vast-dom's picture

Shit splatters fan! Blades and shit go flying!

Thu, 06/21/2012 - 15:35 | 2548387 battle axe
battle axe's picture

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

Thu, 06/21/2012 - 15:49 | 2548455 Everybodys All ...
Everybodys All American's picture

Paging Warren Buffet.

Thu, 06/21/2012 - 15:51 | 2548464 SHEEPFUKKER
SHEEPFUKKER's picture

Another 5 billion dollar rubber ducky bathtub deal?

Thu, 06/21/2012 - 16:59 | 2548777 johngaltfla
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.

Thu, 06/21/2012 - 15:33 | 2548358 SilverTree
SilverTree's picture

Drum-roll please!

Thu, 06/21/2012 - 15:32 | 2548359 EscapeKey
EscapeKey's picture

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

Thu, 06/21/2012 - 15:41 | 2548380 AccreditedEYE
AccreditedEYE's picture

You sound just like Peter Tchir...  http://www.tfmarketadvisors.com/ 

Thu, 06/21/2012 - 15:33 | 2548364 BurgundianRon
BurgundianRon's picture

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

Thu, 06/21/2012 - 15:35 | 2548385 Monkeyfister
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.

Heh.

Thu, 06/21/2012 - 15:43 | 2548423 Marginal Call
Marginal Call's picture

Tomorrow is the ramp up on new QE rumors. 

Thu, 06/21/2012 - 15:47 | 2548445 Dr. Engali
Dr. Engali's picture

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

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