Moody's cuts credit ratings on 15 major banks

Associated Press

June 21, 2012, 3:01 p.m.

Moody's Investors Service has lowered the ratings of some of the world's largest banks, including Bank of America, JPMorgan Chase, Citigroup and Goldman Sachs.

The ratings agency said late Thursday that the banks were downgraded because their long-term prospects for profitability and growth are shrinking.

The ratings agency said it was especially concerned about banks with significant capital market activities during a time of increased volatility in markets.

A downgrade usually means that it becomes more costly for banks to raise money by selling debt. Investors demand higher interest for riskier debt, which is what the downgrades represent.

Moody's had said in February that it was considering downgrading the credit ratings of major banks

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Today, we shall see red-blood .... the battlefield of running ... hiding from BEAR ... slaughtering of those in markets, buying at the peak of KLCI at 1600. Today ... those who short the FKLI will be smiling.

I will be taking a serious step venturing into FKLI and FCPO. Yes, to begin with ... I will start with two of my tratles, AW and JL. Since they are serious to learn too, so we decided to learn together. Putting some amount for learning purposes to see if we could survive till end of the year.

Being a trader, I will want to see myself slowly moving into different financial instruments, and to see if it is 'suitable' to my likings.

We will create a blog for that ... to jot down our readings and our trades. Then, linking to those FKLI's bloggers ... and learn from them. It is a new world and I do not expect it to be easy.

p/s : GT ... finally, after 4.5 years .... here I come. Haha

You see, when market is peaking ... it is only logical to go opposite direction. I have sold many of my stocks, but in FKLI .... we could go long or short. Shorting is allowed there. It just means, if we think the KLCI will go lower from here ... we go 'short'(sell first, buy later ... the opposite of our usual 'long').

Once we are ok/good with FKLI(by next year?), we will share it with our group!! Yeah ... I will share my knowledge with my groups.

Today ... will be bearish. I won't be buying anything much eventho it might dive(who knows, with Malaysia-boleh spirit ... KLCI might even in green .. KLCI is the index around, ok?).

Wish you 'luck' if you are still in markets ... wish me luck in my venture.

FKLI ... here I come

TEH