Moody's warns European banks need more cash

[No Elephants]

Moody's warns European banks need more cash



By Laura Noonan

LONDON | Thu Jan 24, 2013 7:04am EST

(Reuters) - Banks in Spain, Italy, Ireland and Britain need to set aside much more money to cover potentially bad loans, credit ratings agency Moody's said on Thursday, meaning European taxpayers may again be tapped for cash.

European banks have already raised hundreds of billions of euros to cover possible losses from loans that soured in property and financial market crises. Much of the funding has come from governments.

"We believe that many banks, in particular in Spain, Italy, Ireland, and the UK, require material amounts of additional provisions to fully clean up their balance sheets," Moody's said in its global banking outlook for 2013.

"Some banks have in recent years delayed full recognition of embedded loan losses, partly by restructuring loans," the report added. "This strategy of buying time (often tolerated by regulators) limits a bank's capacity for new lending and poses risks for creditors of European banks."

Moody's did not say how much extra money banks would need.

http://www.reuters.com/article/2013/01/24/us-europe-banks-idUSBRE90N0HH20130124

Moody's threatens to downgrade us again, too.

Guess Moody's is da boss dese days.

'Cause they were all over Wall Street's case when Wall Street was pumping those crap mortgage derivatives into the economies of the U.S. Greece, Spain and others.

oh, wait. Moody's was rating those very highly. But the Full Faith and Credit of the U.S.A., not so much.

[Enthusiast]

1. Credibility is no longer earned in this brave new world.

Credibility is assigned. The PTB want you to have credibility, BOOM, you have credibility.

How do they achieve this? The use their completely owned and totally submissive media to tell the people who has credibility.

Of course Moody's credibility should be forever tarnished. But, because Moody's proclamations are useful to the PTB we will all agree that Moodys has unimpeachable credibility. And it ain't just Moodys and the credit rating. It's every fucking aspect of our lives. It's 1984 and most of us aren't recognizing it.

TPTB are insane to cut "entitlements". They also want to continue to use fossil fuel at the exclusion of better, more sensible alternatives. And they want world wide military conflict. These are their aims and they will achieve their aims just as surely as they got Harry Reid to cave on the filibuster rule.

It's 1984 right fucking now.

[No Elephants]

2. It's been 1984 for a very long time. As for the PTB,

just think about having been a slave or a Native American three hundred years ago.

Or a white man having to answer to the East India company for lack of profit.

Read the original Constitution (sans amendments) with the PTB in mind. It's not very long.

But it was designed to make sure the federal government protected the wealthy, shipowners and shipping in particular.

Not, I suspect because the poor colonial ladies were awaiting a shipment the latest fashions from Paris.

"Follow the money" (and there was a lot of it in the slave - rum-molasses triangle and the cotton industry).

We romanticize the Framers so much. Read without that brainwashing, a lot in the Constitution as originally written was either shameful on its face or shameful if you thought about it for a few minutes.

Fortunately, the people refused to ratify it unless they got agreement that the Bill of Rights would be added quickly. And the PTB in thos days had enough integrity to keep that promise. Today, I would not take any politician's word on something like that.

Even at that, it took a court packing plan and a few uber liberal Justices like Warren, Douglas and Brennan to do much about enforcing individual rights.

[Enthusiast]

3. Very perceptive as usual.

I read a good article in the latest Military History magazine about the revolutionary war generals that were set on establishing a hereditary monarchy - Society of the Cincinnati. It was eye opening. General Washington could hardly contain his disgust with this bunch. The framers, for all their warts, were miles ahead of the damn generals. Things could have turned out very differently.