The global financial collapse edges ever closer
Fifteen of the biggest global banks were downgraded by Moody’s Investors Service on Thursday, adding to pressure on their borrowing costs and triggering multi-billion dollar collateral calls.
Morgan Stanley, seen as the most vulnerable, escaped the three-notch downgrade that Moody’s had threatened but saw its rating cut from A2 to Baa1, three notches above “junk”.
Stock markets fell as anticipation of the downgrades, which came after US markets closed, added to fears over the global economy. Shares in Bank of America, Citigroup and RBS fell by more than 3 per cent by the closing bell. The S& P 500 closed down 2.2 per cent at 1,325.51.
Labels: Bank of America, banking crisis, Citigroup, financial collapse, financial meltdown, Financial Times, house of cards, Moody's Investor Services, Morgan Stanley, Royal Bank of Scotland, too big to failSubmit To Propeller