The global financial collapse edges ever closer

breaking news from the financial times...

Moody's downgrades biggest global banks

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.

bring it on... i've been praying for this absurd house of cards to fall for a very long time...

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The law should be changed to allow the directors of failed banks to be automatically banned, fined and stripped of their remuneration

a story on the recently issued report on failure of the royal bank of scotland from the ft...

The law should be changed to allow the directors of failed banks to be automatically banned, fined and stripped of their remuneration, according to a long-awaited report into the catastrophic failure of Royal Bank of Scotland three years ago.

In a near 500-page report into the management and regulatory failings that brought about RBS’s collapse following its takeover of Dutch rival ABN Amro, Financial Services Authority chairman Lord Turner says the regulator was legally hamstrung.

“The fact that no individual has been found legally responsible for the failure begs the question: if action cannot be taken under existing rules, should not the rules be changed for the future?”

Banks are different from other kinds of company, Lord Turner says. The failure of a bank is “a public concern, not just a concern for shareholders”. As a result, major bank acquisitions should in future require explicit regulatory approval, the report concludes.

"banned, fined and stripped"... sounds good to me... i'd like to be hearing that kind of recommendation being discussed for our banksters here in the u.s... hell, i'd like to hear anything involved real accountability being discussed here in the u.s...

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