“Banks are dead” – Max Keiser..28 of Spain’s banks downgraded
The global banking system is ‘dead’ and people need to push out from what he called “banking terrorists” and stand up for themselves, according to Max Keiser, the host of RT’s Keiser Report.
“People have to stand up and realize that no one’s going to help them but themselves”, Max Kaiser told RT from the International Economic Forum in St. Petersburg
The credit ratings agency Moody’s has downgraded 15 global banks and financial institutions, among them the Royal Bank of Scotland, Barclays and HSBC, Bank of America and Citigroup. The banks said Moody’s decision was backward looking.
“There’s a huge problem in the global banking sector” Keiser said.” In their core they [banks] are as dead as a corpse”.
Keiser also said banks would see massive defaults across Europe and the World, adding that major banks are already “technically insolvent.”
“Deutsche bank is insolvent, BNP is insolvent, Societie General is insolvent and Goldman Sachs is also insolvent”Keiser said.
Leaders of EU’s four biggest economies meet in Rome to try to save the eurozone, that according to Italian Prime Minister Mario Monti has only one week left.
“How many times are we going to hear this high jacking scenario? asks Keiser. “When some technocrat like Mario Monti has put a gun to the people’s head- either give us all your money or we’re going to take all your assets. They are going to do that anyway.”
Keiser has said the downgrade of the banks could not only raise their borrowing costs but would also help politicians use this to put forward the agenda of the global financial governance.
The ratings agency Moody’s has cut the credit rating on 28 of Spain’s banks, one week after the country asked for money to support them.
The move follows a cut to the Spanish government’s own credit rating to just above junk status earlier this month.
Moody’s said in a statement, that Spain’s reduced creditworthiness “implies a weaker credit profile for Spanish banks.”
Among the downgrades was a cut to Banco Santander.
Its long-term rating was cut to Baa2 from A3 and that rating is itself under review for a possible further downgrade.
But Moody’s kept Santander one notch above the sovereign rating of Baa3, the Moody’s release noted, because of the bank’s geographic diversity and what it sees as its manageable exposure to Spanish sovereign debt.
Santander’s UK arm is a standalone business and depositor’s money is protected by the Financial Services Compensation Scheme in the UK.
Banco Bilbao Vizcaya Agentaria was also among those whose ratings were cut.
A cut in an organisation’s credit rating theoretically makes it more expensive for it to borrow money.
Earlier on Monday Spain formally asked for money to help support its banks after an independent audit of Spain’s banks last week found that they will need up to 62bn euros (£50bn) in extra funding.
European authorities had already agreed to provide up to 100bn euros ahead of assessments of the banks’ needs.
indeed..they exist as zombies..or shells..hollowed out but somehow still breathing via attachments from the FED or ECB or IMF or world bank..