Credit rating agencies are currently reevaluating the AAA debt rating of the US government. Moody's and Standard and Poor have both announced that they may downgrade the rating.
What will this result in if they are cut? I hear you ask. Well, if these rating agencies downgrade the investment grade on the US government there will be several repercussions:
-Firstly it will cost the US government more to borrow money
-It will decrease investor confidence in government bonds
-And lead to an overall negative effect on the US economy
Kind Regards,
Sam
Showing posts with label Debt. Show all posts
Showing posts with label Debt. Show all posts
Friday, 15 July 2011
Bank Stress Tests
Ten European banks have been tested by the European Banking Authority and results are to be published later today. In total 90 banks are being tested including Lyold's Banking Group and the Royal Bank of Scotland.
These tests are a more hardened version of the previous stress tests after there were concerns that they were not testing enough.
Banks will be required to publish their sovereign debt exposure to the public and then for the public to come to their own conclusions about the data and to the strength of the banks.
Stay tuned for a quick update on these results later.
Kind Regards,
Sam
These tests are a more hardened version of the previous stress tests after there were concerns that they were not testing enough.
Banks will be required to publish their sovereign debt exposure to the public and then for the public to come to their own conclusions about the data and to the strength of the banks.
Stay tuned for a quick update on these results later.
Kind Regards,
Sam
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