James Moore: Moody’s gets into the holiday spirit with downgrade
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.Outlook Talking about being late to parties, credit ratings agencies have made an art form of it. The don’t usually arrive until after everyone has gone home and the cleaners have started to make an attack on the mess.
Given this, it’s hardly a surprise that Moody’s has only now woken up to the fact that UK banks have huge, unquantified liabilities sitting on their books as a result of regulatory investigations into past misconduct. As such, it has downgraded its outlook for the sector to “negative”.
Moody’s feels that the imposition of requirements such as a “ring-fence” around retail banking assets will reduce the likelihood of future bailouts.
Regulators and politicians will like the sound of that because that’s the aim of the fence. It is, of course, hogwash.
If a big bank trips up again it is highly unlikely that anyone will risk Lehman Brothers redux. The taxpayers’ chequebook will be out quicker than you can say “never again”.
But if Moody’s wants to cheer everyone up by saying it’s less likely, well, where’s the harm?
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments