by Alan Thornhill
The ratings agency, Moodys, has downgraded some of the world’s biggest banks, including Morgan Stanley and Citibank.
Altogether, 15 banks have been hit.
Banks in the United States, the United Kingdom and Europe, have been downgraded.
Australian banks have escaped.
However, their work, financing Australia’s imports and exports will be made more difficult.
And Australian borrowers can expect to pay more, as this country’s banks borrow part of the money they lend here, on overseas markets.
Moody’s strike will add to the woes of a global financial system that is already under severe pressure, as a result of the European debt issues, and lingering after shocks from the global economic crisis.
The announcement came shortly after a run on Wall Street saw more than 250 points wiped off the Dow Jones index overnight.
But Moody’s had signalled that it might strike.
That meant that Wall Street had months to prepare for the cuts.
So they should have little additional effect on banks’ stock prices or banks’ ability to borrow money.
However borrowing costs are already relatively high, and the downgrades will not help an industry still struggling with a weak global economy and the aftershocks of a financial crisis it helped create.
Alan Thornhill is a parliamentary press gallery journalist.
Private Briefing is updated daily with Australian personal finance news, analysis, and commentary.
Thursday December 12
Australia’s unemployment rate rises slightly to 5.8 per cent in November 2013 (seasonally adjusted):ABS
The Dow Jones index fell 129 points to 15,844
Holden will stop producing vehicles in Australia in 2017. Toyota likely to follow suit
Unemployment figures for November to be released at 11.30am
High Court to rule today on a Commonwealth challenge to an ACT law permitting same sex marriages. About 30 couples directly affected
|Aud To Usd||0.905||N/A||N/A|
|Bhp Blt Fpo||35.920||-0.260||-0.72%|
|Origin Ene Fpo||13.220||-0.120||-0.90%|
|Nat. Bank Fpo||32.870||0.000||+0.00%|
The News This Week
- Unemployment creeps up
- Australians have the “world’s “highest” median wealth:Keating
- PM still wants to cancel Senators’ Christmas
- PM talks to Toyota
- Holden’s decision will hit Australia’s job market very hard
- PM’s “panzer division”
- Holden to close. Toyota likely to follow
- Consumer spirits fade
- Chinese coal company gets a break
- PM cancelling Senators’ Christmas?
- Consumer confidence crashes
- Say if you will stay: Holden urged
- Government asks child care workers to give back their pay rise
- Public servants:what they cost
- Building industry gathers strength
- Airlines (81)
- Banking (2582)
- Business (2700)
- Communications (58)
- crime (15)
- Disaster (119)
- Economics (2675)
- education (2)
- Environment (130)
- Financial advice (2420)
- Health (102)
- Housing (713)
- Inflation (529)
- Insurance (107)
- Investment (2200)
- Markets (2003)
- Media (133)
- medical (42)
- mining (270)
- pay (113)
- Politics (2743)
- population (170)
- Regulation (1035)
- retirement (87)
- rural (16)
- Rural australia (113)
- Security (23)
- Social security (257)
- Superannuation (235)
- Tax (404)
- The latest (138)
- Trade (751)
- Uncategorized (393)