Max
Keiser: Soros gets gold advice from Keiser Report
The
Eurozone debt crisis is getting dangerously close to the monetary
union's powerhouse - Germany. Moody's has cut the ratings of several
German banks, including the country's second biggest lender. Austria
is also affected. Max Keiser, RT's financial guru and host of The
Keiser Report smells a rat in all this. He says, the crisis is the
chance for some to make a fast buck.
Moody’s
never sleeps: German and Austrian lenders downgraded
Moody’s
rating agency has downgraded 7 German banking groups, as well as
Austria’s 3 biggest lenders. The news comes amidst increasing woes
over economic stability in the eurozone key economies – Germany and
France.
RT,
6 June, 2012
Moody’s
rating agency has downgraded 7 German banking groups, as well as
Austria’s 3 biggest lenders. The news comes amidst increasing woes
over economic stability in the eurozone key economies – Germany and
France.
Among
the victims under fire were Germany’s second biggest lender
Commerzbank, as well as Dresdner and Landesbank – also on the list
the country’s top 10.
“Today's
rating actions are driven by the increased risk of further shocks
emanating from the euro area debt crisis, in combination with the
banks' limited loss-absorption capacity,” Moody’s explained in
its press-release.
The
rating agency held off Germany’s number one lender Deutsche Bank AG
and its subsidiaries, saying that it “will be concluded together
with the reviews for other global firms with large capital markets
operations.”
In
Austria, Moody's cut the long-term rating for Erste Group Bank AG as
well as changing the outlook to negative. UniCredit Bank Austria AG
and Raiffeisen Bank International AG also lost out, with the outlook
now being negative for the first and stable –for the latter.
“The
fact that these are German and Austrian banks that ended up at the
economists’ crosshair points to the globalization of the slump in
the financial sector,” says Anna Bodrova from Investcafe.
The
move didn’t come out of the blue, agreed Johan Van Overtveldt,
editor-in-chief of both of Belgiums leading business magazines,
Trends and Knack.
“Nobody
will escape [a downgrade], even Germany and German banks if we
continue to handle this crisis in the way we’ve been doing for the
past 2 years. A lot of talk, but not much specific and well targeted
action in order to solve this crisis,” Overtveldt told RT.
Just
a day earlier Moody’s downgraded two lenders in Greece that are
closely tied to French banking. Emporiki Bank that fully belongs to
French banking group Credit Agricole and Geniki Bank, where Societe
Generale holds a 99% stake, saw their ratings cut on Tuesday.
The
downgrades follow a bunch of negative economic data from the
locomotive economies in the euro zone – Germany and France. Tuesday
PMI report for May pointed to a slowdown in business activity in the
two countries, saying that “German output fell for the first time
since last November and, although only modest, the rate of decline
was the fastest for almost three years.”
“While
Germany is contracting only marginally, alarmingly steep downturns
are evident in Spain, Italy and now also France. Italy seems to be
faring the worst, with its PMI consistent with GDP falling by more
than 1% in the second quarter. However, declines could also exceed
0.5% in both France and Spain,” the report added.
The
ongoing downgrades come as a part of Moody’s broad review of
financial institutions across Europe and the US that was announced in
mid April. Other massive revisions include last week cuts for 9
Danish, as well as 3 Finnish banks.
Financial
analyst Max Keiser is skeptical about the downgrade. “Moody’s is
not an impartial judge in this. They were caught picking sides during
the 2008 crisis. They are a publicly-listed company where Warren
Buffett is a huge shareholder. They don’t downgrade Wells Fargo, a
bank where Buffet has an interest, but they downgrade other countries
and banks that are not within their 'pay-for-ratings' scheme. Moody's
is highly corrupted,” Keiser said.
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