The consequences of the U.S. banks downgrade

NEW YORK | Last week 15 major banks, including the nation’s three largest institutions, JPMorgan Chase, Bank of America and Citigroup, which together have more than $6.4 trillion in assets, suffered credit ratings cuts by Moody’s. No matter their efforts to strengthen their operations since they received a warning in February, their core businesses still present structural weaknesses, the ratings agency said. Bank of America, which owns Merrill Lynch, and Citigroup,…


S&P, Pain, Spain, Spanic

The housing bubble, like the turbid monster of an old movie, blows in time and again. Didn’t Spain’s president Mariano Rajoy see it coming? Standard & Poor’s Rating Services might have opened his eyes when it lowered its long-term sovereign credit rating. The Kingdom of Spain woke up on Friday under the ‘BBB+’ tag from the previous ‘A’. The risk agency did not just cut down the short-term sovereign credit rating to…