Credit rating agency Moody's downgrades 15 major global banks, including Bank of America and JPMorga

How anyone could take the raings agencies seriously after the revalations of "pay to play" is beyond me.

Please tell me this will hurt them.

Don't the banks hold all the cards? Who cares what the credit rating agencies say.

However, it's much more important as an indicator that current policies are moronic.

hard to see how that could hurt borrowing costs.
It DOES throw a shadow on any debt they try to sell, tho.

Such as changing statement cycle dates in order to trick people who make automatic payments into going delinquent, so their rates can be pushed up even higher.

To prop up companies that should by all rights have failed long ago because of their own poor management.

http://www.cbsnews.com/8301-505123_162-57458237/moodys-downgrades-credit-of-5-big-u.s-banks/

MoneyWatch) Moody's Investors Service (MCO) has cut the debt ratings on five large U.S. banks, along that of a number of other global financial institutions.

Morgan Stanley (MS) received a two-notch cut in its senior long-term debt rating, less than some market observers had expected. The credit rating agency, which announced the move after the close of trading Wednesday, also lowered its rating for Bank of America (BAC), Citigroup (C), Goldman Sachs (GS), and JPMorgan Chase (JPM).

Moody's cited the banks' shrinking growth and dimming profit forecast in explaining the downgrade. The ratings agency also highlighted the firms' exposure to the capital markets at a time of significant market volatility.

We know how that turned out.

the banks have alot of power right now over the government.

I think the Fed needs to be strengthened.

This is a fraud. First of all it is Moody who gave triple A rating to the financial instruments comprised of a bundle of split up shady debt. Why should we listen.

The reality is I believe this is collusion between the agency and banks to increase consumer interest rates so they make more money and claim its the rating. That way they hide from the political fall out. Remember, they borrow from each other or from the Feds. This is also another way to force feds to keep their rates down. It is a fraud.

Posters are absolutely correct in mistrusting the rating agencies, for the reasons cited above. However, posters aren't taking the next step; rating agencies have a confirmed history of OVER rating, especially for the big banks and investment firms. A logical person would assume that whatever rating the firms give, the reality is much, much worse.

If the ratings agencies are lowering their ratings, this can only mean one thing: the ratings should actually be EVEN LOWER.

are being more cautious now. I would guess they have learnt their lesson. Afterall if they get it wrong again then what it the point of them even existing?

The Moody's recommendations were supposed to be out at 4 o'clock, but were delayed due to "negotiations" with Morgan Stanley.

It is worse, much worse, then what they are saying.

http://www.zerohedge.com/news/here-we-go-moodys-comes-out-morgan-stanley-cut-only-2-notches

and someone pays them to come up with a rating.
They've been wrong as much as they've been correct the past
number of years and I don't put much faith in whatever Moodys says.

When WE THE WORLD create 40 times our needed money supply in negotiable paper wealth based on borrowing, who would think that something could go wrong.

http://www.bizjournals.com/jacksonville/news/2012/06/22/moodys-downgrades-credit-ratings-of.html

http://www.reuters.com/article/2012/06/22/us-financial-moodys-downgrades-idUSBRE85K1QL20120622

http://www.cnbc.com/id/47914484