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stevebrowne

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

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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?

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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.

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?

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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.

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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)

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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?

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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?

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Guest sillybear2

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. :ph34r:

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  • 315 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% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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