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More on the Moody's banking downgrades: A three-notch cut for CS. Two-notch rating cuts for JPM,...

More on the Moody's banking downgrades: A three-notch cut for CS. Two-notch rating cuts for JPM, C, MS, GS; just one notch for BAC. After hours: MS +3.7%; JPM +1%; BAC +1%; C +0.6%. (full statement)
Comments (15)
  • 14skillz
    , contributor
    Comments (7) | Send Message
     
    Banks receive downgrades and their stocks go upwards ?
    21 Jun 2012, 05:32 PM Reply Like
  • wyostocks
    , contributor
    Comments (7712) | Send Message
     
    Sure. All will rationalize that it could have been worse so ergo the downgrades are in fact good news.

     

    I don't get it either but that is how it works.
    21 Jun 2012, 05:35 PM Reply Like
  • Jason Aycock
    , contributor
    Comments (107) | Send Message
     
    MS shareholders, for example, had baked in a three-notch cut today, so they're seen as coming off light.
    21 Jun 2012, 05:37 PM Reply Like
  • jmartz101
    , contributor
    Comments (187) | Send Message
     
    I agree its dumb but the way it works but come monday they'll be down again for some other reason.
    21 Jun 2012, 06:14 PM Reply Like
  • Kraken
    , contributor
    Comments (542) | Send Message
     
    Don't worry, they'll report record profits, and their stocks will get hammered.
    21 Jun 2012, 09:30 PM Reply Like
  • Herr Hansa
    , contributor
    Comments (3080) | Send Message
     
    Perhaps the logic is that worse ratings implies worse off banks, which suggests a more likely QE3. I'm not one to believe that, but if the market is running on QE3 hopes, when this does not happen we should see quite the sell-off.
    21 Jun 2012, 06:20 PM Reply Like
  • captiankirkoptions
    , contributor
    Comments (193) | Send Message
     
    When Moody's dowgrades something it means buy. Look at US debt last year. Ratings agencies are laughable and need to go.
    21 Jun 2012, 06:21 PM Reply Like
  • Day Trader001
    , contributor
    Comments (676) | Send Message
     
    JPM is a "Blue Light Special"....$
    21 Jun 2012, 06:37 PM Reply Like
  • WisPokerGuy
    , contributor
    Comments (800) | Send Message
     
    Moody's??? Come on. Give me a break! Aren't those the same idiots who back in 2007 were rating CDS notes that weren't worth the paper they were written on AAA+???

     

    You want to know how to judge credit worthiness of a bank? How much credit risk are they carrying and how much do they have in asset reserve. Simple. Read the quarterly statements. It's all there. You don't need some credit agency like Moody's cutting a banks rating to make themselves feel important and relevant in order to know whether to buy or not buy a bank stock.

     

    This has been a non-paid rant against meaningless drivel and useless information (i.e. Moody's).
    21 Jun 2012, 07:17 PM Reply Like
  • MexCom
    , contributor
    Comments (3051) | Send Message
     
    I agree. Moody's is just rating themselves. Another downgrade for their rear view mirror. Worthless for a stock investor. You have to look to the future.
    22 Jun 2012, 05:56 AM Reply Like
  • doc47
    , contributor
    Comments (1018) | Send Message
     
    Did any of these banks clearly state what percentage and amount of "PIIGS" debt they are responsible for?
    21 Jun 2012, 07:18 PM Reply Like
  • msphar
    , contributor
    Comments (161) | Send Message
     
    BAC up in afterhours trading, That must tick a few people off.
    21 Jun 2012, 08:25 PM Reply Like
  • TangoOscar
    , contributor
    Comments (377) | Send Message
     
    I bet all the banks agreed to immediately buy one another's stock after hours as an in your face to Moody's or they are buying their own stock. Its what I would do if I was an executive at one of these banks. "Oh so you SOB's want my stock to go down, huh?? NOPE, GOING UP 4% LIKE MAGIC, LOLO!
    21 Jun 2012, 09:20 PM Reply Like
  • Rubicon Associates
    , contributor
    Comments (1794) | Send Message
     
    MS got off light. The irony is that their bonds will rally, which is a negative for their financials.
    21 Jun 2012, 11:57 PM Reply Like
  • MexCom
    , contributor
    Comments (3051) | Send Message
     
    The best thing to see how worthless the ratings are is to see how the bonds have continued to improve. My BAC paper is now down to one issue and its still quoted at par. With the extension of "twist" by the Fed, bond investors will continue to look for the higher yields available.
    22 Jun 2012, 06:01 AM Reply Like
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