Friday, July 15, 2011

S&P Ready To Downgrade Anything With Two Legs And A Pulse*


Reuters reports that Standard & Poor's Friday raised the pressure on debt negotiators in Washington, saying it could downgrade insurers, securities clearinghouses, mortgage agencies and a laundry list of other firms without a deal soon to lift the U.S. debt ceiling and cut the deficit.

While S&P had already made clear it could downgrade the United States' sovereign credit rating, the Friday move struck directly at the heart of the financial system, raising the prospect of knock-on effects should the country exhaust its ability to borrow to pay bills. The U.S. Treasury took the last available step Friday to try and extend that borrowing capacity.

The ratings agency on Friday put on review for possible downgrades a range of powerful financial firms — many of them little known to the public but crucial to the country's financial infrastructure.U.S. government securities are central to the operations of most of the companies cited. They include……..
Find out more at http://www.cnbc.com/id/43772701

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