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Sky Breaking: Moody's To Downgrade 14 Of 18 Uk's Top Banks

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http://ftalphaville.ft.com/blog/2011/05/24/576086/moodys-on-her-majestys-bail-in/

No fewer than fourteen UK banks and building societies placed on review for downgrade by Moody’s on Tuesday — plus negative outlooks for Barclays and HSBC:
Bank of Ireland (UK) plc (Baa3/P-3); Co-Operative Bank plc (A2/P-1); Coventry Building Society (A3); Lloyds TSB Bank plc (Aa3); Nationwide Building Society (Aa3/P-1); Newcastle Building Society (Baa2/P-2); Norwich & Peterborough Building Society (Baa2/ P-2); Nottingham Building Society (A3); Principality Building Society (Baa2/P-2); Royal Bank of Scotland plc (Aa3); Santander UK plc (Aa3); Skipton Building Society (Baa1/P-2); West Bromwich Building Society (Baa3/P-3); Yorkshire Building Society (Baa1/P-2).
Never mind the senior, the UK remains locked to its banks if no effective resolution regime materialises.
:ph34r:

[8:45 Update]

http://www.moodys.com/research/Moodys-reviews-ratings-of-selected-UK-financial-institutions-for-possible?lang=en&cy=global&docid=PR_219540

Edited by dammfoolman

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Its criminal really, in the past if you wanted to find safety during a banking crisis then the average joe could have found a relatively sound building society to place deposits in but they are fooked aswell. Its one thing the US has a major advantage over the uk in, in that some of the smaller local state banks are pretty much as sound as a pound, there is no escape for the average UK punter, even the supermarkets are higly geared and if someone wanted to open a new narrow bank in the UK it would never get a licence

Edited by georgia o'keeffe

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Wait so HAVE they or HAVEN'T they done it yet?

If they're only considering it................ they can yet be bribed.

I was puzzled at why Moodys have NOT downgraded but are merely 'talking' about it. Do they normally 'talk about' all their decisions publicly or do they just carry them out and make them public....

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Simple solution. The government support will never be withdrawn.

I was puzzled at why Moodys have NOT downgraded but are merely 'talking' about it. Do they normally 'talk about' all their decisions publicly or do they just carry them out and make them public....

Exactly.

One of the subsidies that Moody's will be taking into account is that the BoE lend to them at 0.5%. So when rates go up, they make less profits off us suckers.

If anything, this announcement (or what the announcement is announcing, should it happen) is going to delay rates going up.

If I was a little more paranoid I would think this was a deliberate and well timed act in collusion with the banks to affect the next BoE decision. :ph34r:

Edited by MC Fur Q

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Bad news, the cost of borrowing from the money markets for our UK banks will go up. These will be past on to YOU. Good bye low interest rates.

Low rates ? Have you seen the margins the banks have been running over base recently (compared to the long term average)

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Just put on the news to see their take on it but it has a far more important story - how to house train rabbits, I weep for the future!

Saw that too. Had to switch to the Keiser Report on RT.

Disturbing contrast. Max Kaiser raving about the Global Financial Gulag and "financial repression" to the death, while the UK is treated to "look, some fluffy bunnnies". :ph34r:

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And so it begins.

How often have I seen those words posted here?

(Google offers a clue. I didn't look beyond the first page of results from this site, but those go back to 2007).

What again?

Another fekin false dawn!

It certainly is... until the government comes up with yet another bullsh!t solution to all our problems, which, like all the others, lasts about 2 years (2001, 2003, 2005, 2007, 2009, 2011...)

... 2013... and again for the general election in 2015...

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Saw that too. Had to switch to the Keiser Report on RT.

Disturbing contrast. Max Kaiser raving about the Global Financial Gulag and "financial repression" to the death, while the UK is treated to "look, some fluffy bunnnies". :ph34r:

Could you imagine the BBC having Max on the 6 o'clock news?

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What is the point in working when you have no secure place to keep your savings, I don't know.

When more people start thinking like that, the system is in trouble. It requires that you do lots of work now for promises that will be broken.

I wish I had learnt that lesson sooner.

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How often have I seen those words posted here?

(Google offers a clue. I didn't look beyond the first page of results from this site, but those go back to 2007).

Yep, the kiss of death to any house price crash.

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When more people start thinking like that, the system is in trouble. It requires that you do lots of work now for promises that will be broken.

I wish I had learnt that lesson sooner.

Well, surely now's the time to take your courage in your hands and close your bank accounts and spend your money while it still has some value? Then you'll only need to work to live a hand to mouth existance.

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Cashconverters, tanning salons, nail bars, coffee shops, Poundland.... there's no end to the UK's economic resources.

Not forgetting the 'foot sucking fish shop' led recovery ...

..quick nationalise those ratings agencies and sent the execs on a hill walking awareness course

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Most of the money comes from international money markets so a downgrading of a bank would have a huge impact on the ability to borrow, or rather at what rate they get it.

It is big stuff. If BoE were to pump more money into the system I see no logic as to why that would make the international market any better. In fact it would make it worse.

My opinion is that we are seeing the chickens come home to roost. The USA let markets adjust and bubbles burst. Artificially propping up a market, and hence a country, has exposed the banks to huge systemic risk and a downgrading would appear appropriate. Even the ratings agencies 'thinking' about it tells the market to price it in and react.

Just my opinion.

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Cashconverters, tanning salons, nail bars, coffee shops, Poundland.... there's no end to the UK's economic resources.

No we don't need that....we need more teachers, doctors, nurses, police, soldiers and council workers, we need more managers, we need more money. ;)

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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.

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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.

a squillion pound bet that the royal family have moved their money from Coutts

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Guest sillybear2

Bad news, the cost of borrowing from the money markets for our UK banks will go up. These will be past on to YOU. Good bye low interest rates. The death spiral will now begin.

Good news, it means they are now rated as they should be, the market now accepts these institutions will be allowed to fail (with depositors protected) and they have lost their hallowed risk free status. They are now seen as discrete businesses instead of piggybacking the good credit rating of HM Govt (yes, I know, make up your own jokes).

This is good news for other parts of the economy, non-banking sectors will no longer be seen by the market as a second preference to lending to "risk-free" banks. Who knows what the pass thru will be in terms of borrowing costs, bank margins are pretty fat at the moment, they might have to contemplate shrinking the bonus pool instead. If they weren't operating as a cartel that would be happening anyway.

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  • 314 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
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      • Even
      • up 2.5%
      • up 5%



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