Oh dear god this seems like a joke, but it's not. Moody's upgraded some of the banks about to get slaughtered by the subprime meltdown and credit crunch, thinking the US government won't let them fail.
I thought Fannie and Freddie were bad enough - but now the taxpayers would bail out banks that have made horrific decisions during the Late Great Housing Bubble and resulting collapse?
Wow.
Get ready America for days like you've never seen. You live in interesting times. Thanks HP'ers for the link.
JPMorgan Chase, Large U.S. Banks Have Ratings Raised by Moody's
I thought Fannie and Freddie were bad enough - but now the taxpayers would bail out banks that have made horrific decisions during the Late Great Housing Bubble and resulting collapse?
Wow.
Get ready America for days like you've never seen. You live in interesting times. Thanks HP'ers for the link.
JPMorgan Chase, Large U.S. Banks Have Ratings Raised by Moody's
JPMorgan Chase & Co., Bank of New York Co. and State Street Bank & Trust Co. gained higher credit ratings from Moody's Investors Service Inc., which said the U.S. government would back the banks if they faced default.
Moody's announced new guidelines for bank credit ratings last month that consider financial strength along with any support companies may get from government and financial institutions if they get into serious trouble. Such backing might be offered if regulators conclude the effects of a failure would be catastrophic for the nation's economy, a concept rooted in banks' financial woes in the 1980s.
``People already feel like they're too big to fail,'' said Jonathan Hatcher, senior research analyst for corporate bonds at Delaware Investments, which holds $98 billion in corporate bonds.
