GordonBrownSpentMyFuture Posted May 24, 2011 Share Posted May 24, 2011 The companies which could be downgraded by Moody's included: • Royal Bank of Scotland • Santander UK • Lloyds TSB Bank • Bank of Ireland UK • Co-Operative Bank • Coventry Building Society (A3) • Nationwide Building Society • Newcastle Building Society • Norwich & Peterborough Building Society (Baa2/ P-2) • Nottingham Building Society • Principality Building Society (Baa2/P-2) • Skipton Building Society • West Bromwich Building Society • Yorkshire Building Society Moody's said the outlook on Barclays has been changed to negative from stable and HSBC has been affirmed with a negative outlook. So pretty much everyone. Incredible. Who are the other two then? Quote Link to comment Share on other sites More sharing options...
Redcellar Posted May 24, 2011 Share Posted May 24, 2011 Heres the list: http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/8532311/Moodys-warns-14-UK-banks-face-downgrade.html "The reassessment is not driven by either a deterioration in the financial strength of the banking system or that of the government," said Elisabeth Rudman, a Moody's senior credit officer and lead analyst for a number of UK banks, on Tuesday. "It has been initiated in response to ongoing guidance from the UK authorities (the Bank of England, the Financial Services Authority and the Treasury) that banks that fail in the future should not expect capital injections from the public purse." The companies which could be downgraded by Moody's included: • Royal Bank of Scotland • Santander UK • Lloyds TSB Bank • Bank of Ireland UK • Co-Operative Bank • Coventry Building Society (A3) • Nationwide Building Society • Newcastle Building Society • Norwich & Peterborough Building Society (Baa2/ P-2) • Nottingham Building Society • Principality Building Society (Baa2/P-2) • Skipton Building Society • West Bromwich Building Society • Yorkshire Building Society Moody's said the outlook on Barclays has been changed to negative from stable and HSBC has been affirmed with a negative outlook. Wow. Prior to 'the problems' there was no assumption and assurance that the government would support them. So basically they are saying that since the problems only the governments assurances have kept the banking systems in their credit ratings. Now they are being re adjusted to reflect their true state, which is now not so sunny? And pray tell, which part of their dealings is potentially lowering their credit ratings? Suggestions anyone? Quote Link to comment Share on other sites More sharing options...
onesmallstep Posted May 24, 2011 Share Posted May 24, 2011 This is just the self sustaining downward spiral, nothing unexpected, the only question is how long will the people continue bailing out the banks and what the hell happens when they stop. (by people bailing out the banks I mean savers getting low interest rates and borrowers paying relatively high rates while putting up with high inflation and no pay rises) What happens when they stop is a recession to beat all recessions. Time to devalue. Quote Link to comment Share on other sites More sharing options...
onesmallstep Posted May 24, 2011 Share Posted May 24, 2011 Wow. Prior to 'the problems' there was no assumption and assurance that the government would support them. So basically they are saying that since the problems only the governments assurances have kept the banking systems in their credit ratings. Now they are being re adjusted to reflect their true state, which is now not so sunny? And pray tell, which part of their dealings is potentially lowering their credit ratings? Suggestions anyone? if you want an answer I'll give you one, toxic assets, currently known as illiquid assets, mostly property at a guess which now cannot be sold for the value that is lent against them (or was if they are repos) Quote Link to comment Share on other sites More sharing options...
onesmallstep Posted May 24, 2011 Share Posted May 24, 2011 as an aside, I think we may be seeing the fight for money between sovereign states and banks and there probably isn't enough to go round. Quote Link to comment Share on other sites More sharing options...
Redcellar Posted May 24, 2011 Share Posted May 24, 2011 This is just the self sustaining downward spiral, nothing unexpected, the only question is how long will the people continue bailing out the banks and what the hell happens when they stop. (by people bailing out the banks I mean savers getting low interest rates and borrowers paying relatively high rates while putting up with high inflation and no pay rises) What happens when they stop is a recession to beat all recessions. Time to devalue. For businesses I agree. I can't see an end to this. Higher costs of borrowing are passed on by banks. So working capital to businesses becomes constrained and belts are tightened further. Less money goes round, less is spent, more cuts are made .... and so the cycle continues. Not seeing spending by businesses increase here. Still seeing it decrease. Are we officially in a recession again? Quote Link to comment Share on other sites More sharing options...
dances with sheeple Posted May 24, 2011 Share Posted May 24, 2011 This is just the self sustaining downward spiral, nothing unexpected, the only question is how long will the people continue bailing out the banks and what the hell happens when they stop. (by people bailing out the banks I mean savers getting low interest rates and borrowers paying relatively high rates while putting up with high inflation and no pay rises) What happens when they stop is a recession to beat all recessions. Time to devalue. People who have up til now spent all their time with their face in a phone or watching X - Fartor, will get very scared/crazy? Quote Link to comment Share on other sites More sharing options...
onesmallstep Posted May 24, 2011 Share Posted May 24, 2011 People who have up til now spent all their time with their face in a phone or watching X - Fartor, will get very scared/crazy? no, they'll just stock up on benefits. Quote Link to comment Share on other sites More sharing options...
Guest sillybear2 Posted May 24, 2011 Share Posted May 24, 2011 For businesses I agree. I can't see an end to this. Higher costs of borrowing are passed on by banks. So working capital to businesses becomes constrained and belts are tightened further. Less money goes round, less is spent, more cuts are made .... and so the cycle continues. Not seeing spending by businesses increase here. Still seeing it decrease. Are we officially in a recession again? An easy way to put a stop to this is to simply issue a new batch of banking licences to unencumbered new entrants that will undercut the existing players. Large companies already bypass borrowing from commercial banks and tap the bond markets directly. They need to find a way for small and medium sized businesses to cut out the parasitic middlemen that are fleecing people to pay for their past mistakes and out of kilter remuneration. The other option is complete nationalisation of the sector. Quote Link to comment Share on other sites More sharing options...
scrappycocco Posted May 24, 2011 Share Posted May 24, 2011 The 2 banks not in the downgrade, anyone know who they are? Quote Link to comment Share on other sites More sharing options...
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