[Bubblesitter]

I agree that Fitch seems to be more ethical than the bigger S&P and Moody’s, but S&P and Moody’s has set the ethical bar low.

I believe it is only a matter of time now before MBIA gets downgraded also by the other credit rating agencies. The pressure on these guys have to be intense not to downgrade MBIA and other insurers. At stake is potentially $10s to 100s Billions in additional writedowns of MBS and related securities by the big banks. I am willing to bet that the government is in quiet discussions with S&P and Moody’s to delay the eventual downgrade. The pressure from their customers has also got to be very intense.

Bubblesitter.

[Bubblesitter]

I agree that Fitch seems to be more ethical than the bigger S&P and Moody’s, but S&P and Moody’s has set the ethical bar low.

I believe it is only a matter of time now before MBIA gets downgraded also by the other credit rating agencies. The pressure on these guys have to be intense not to downgrade MBIA and other insurers. At stake is potentially $10s to 100s Billions in additional writedowns of MBS and related securities by the big banks. I am willing to bet that the government is in quiet discussions with S&P and Moody’s to delay the eventual downgrade. The pressure from their customers has also got to be very intense.

Bubblesitter.

[Bubblesitter]

I agree that Fitch seems to be more ethical than the bigger S&P and Moody’s, but S&P and Moody’s has set the ethical bar low.

I believe it is only a matter of time now before MBIA gets downgraded also by the other credit rating agencies. The pressure on these guys have to be intense not to downgrade MBIA and other insurers. At stake is potentially $10s to 100s Billions in additional writedowns of MBS and related securities by the big banks. I am willing to bet that the government is in quiet discussions with S&P and Moody’s to delay the eventual downgrade. The pressure from their customers has also got to be very intense.

Bubblesitter.

[Bubblesitter]

I agree that Fitch seems to be more ethical than the bigger S&P and Moody’s, but S&P and Moody’s has set the ethical bar low.

I believe it is only a matter of time now before MBIA gets downgraded also by the other credit rating agencies. The pressure on these guys have to be intense not to downgrade MBIA and other insurers. At stake is potentially $10s to 100s Billions in additional writedowns of MBS and related securities by the big banks. I am willing to bet that the government is in quiet discussions with S&P and Moody’s to delay the eventual downgrade. The pressure from their customers has also got to be very intense.

Bubblesitter.

[Bubblesitter]

I agree that Fitch seems to be more ethical than the bigger S&P and Moody’s, but S&P and Moody’s has set the ethical bar low.

I believe it is only a matter of time now before MBIA gets downgraded also by the other credit rating agencies. The pressure on these guys have to be intense not to downgrade MBIA and other insurers. At stake is potentially $10s to 100s Billions in additional writedowns of MBS and related securities by the big banks. I am willing to bet that the government is in quiet discussions with S&P and Moody’s to delay the eventual downgrade. The pressure from their customers has also got to be very intense.

Bubblesitter.

[Bubblesitter]

Going back to the original post…..

I hate to admit it, but the government was right to intervene in the Bear Stearns fiasco.

Without intervention, the collapse would have perhaps triggered a “world turned upside down” scenario. It seems that everyone is now talking about systemic financial collapse.

Here’s a quote from recent Congressional testimony….

A failure to save Bear Stearns, said Timothy F. Geithner, the president of the Federal Reserve Bank of New York, would have led to “a greater probability of widespread insolvencies, severe and protracted damage to the financial system and, ultimately, to the economy as a whole.”

Bubblesitter

[Bubblesitter]

Going back to the original post…..

I hate to admit it, but the government was right to intervene in the Bear Stearns fiasco.

Without intervention, the collapse would have perhaps triggered a “world turned upside down” scenario. It seems that everyone is now talking about systemic financial collapse.

Here’s a quote from recent Congressional testimony….

A failure to save Bear Stearns, said Timothy F. Geithner, the president of the Federal Reserve Bank of New York, would have led to “a greater probability of widespread insolvencies, severe and protracted damage to the financial system and, ultimately, to the economy as a whole.”

Bubblesitter

[Bubblesitter]

Going back to the original post…..

I hate to admit it, but the government was right to intervene in the Bear Stearns fiasco.

Without intervention, the collapse would have perhaps triggered a “world turned upside down” scenario. It seems that everyone is now talking about systemic financial collapse.

Here’s a quote from recent Congressional testimony….

A failure to save Bear Stearns, said Timothy F. Geithner, the president of the Federal Reserve Bank of New York, would have led to “a greater probability of widespread insolvencies, severe and protracted damage to the financial system and, ultimately, to the economy as a whole.”

Bubblesitter

[Bubblesitter]

Going back to the original post…..

I hate to admit it, but the government was right to intervene in the Bear Stearns fiasco.

Without intervention, the collapse would have perhaps triggered a “world turned upside down” scenario. It seems that everyone is now talking about systemic financial collapse.

Here’s a quote from recent Congressional testimony….

A failure to save Bear Stearns, said Timothy F. Geithner, the president of the Federal Reserve Bank of New York, would have led to “a greater probability of widespread insolvencies, severe and protracted damage to the financial system and, ultimately, to the economy as a whole.”

Bubblesitter

[Bubblesitter]

Going back to the original post…..

I hate to admit it, but the government was right to intervene in the Bear Stearns fiasco.

Without intervention, the collapse would have perhaps triggered a “world turned upside down” scenario. It seems that everyone is now talking about systemic financial collapse.

Here’s a quote from recent Congressional testimony….

A failure to save Bear Stearns, said Timothy F. Geithner, the president of the Federal Reserve Bank of New York, would have led to “a greater probability of widespread insolvencies, severe and protracted damage to the financial system and, ultimately, to the economy as a whole.”

Bubblesitter

[Bubblesitter]

Downgrade of MBIA today…

http://www.bloomberg.com/apps/news?pid=20601087&sid=a0KG6bCua6os&refer=home

MBIA Loses AAA Insurer Rating From Fitch Over Capital (Update2) By Emma Moody

April 4 (Bloomberg) — Fitch Ratings cut MBIA Inc.’s insurance rating to AA from AAA, saying the bond insurer no longer has enough capital to warrant the top ranking.

MBIA, the world’s largest bond insurer, would need as much as $3.8 billion more in capital to deserve an AAA, New York- based Fitch said today in a report. The outlook is negative, Fitch said.

Fitch issued the new, lower rating even though Armonk, New York-based MBIA asked the ratings company last month to stop assessing its credit worthiness. The two companies disagree over how much capital MBIA needs to absorb losses on the bonds it insures.

“It will be difficult for MBIA to stabilize its credit trend until the company can more effectively limit the downside risk” from collateralized debt obligations, Fitch said in the report.

[Bubblesitter]

Downgrade of MBIA today…

http://www.bloomberg.com/apps/news?pid=20601087&sid=a0KG6bCua6os&refer=home

MBIA Loses AAA Insurer Rating From Fitch Over Capital (Update2) By Emma Moody

April 4 (Bloomberg) — Fitch Ratings cut MBIA Inc.’s insurance rating to AA from AAA, saying the bond insurer no longer has enough capital to warrant the top ranking.

MBIA, the world’s largest bond insurer, would need as much as $3.8 billion more in capital to deserve an AAA, New York- based Fitch said today in a report. The outlook is negative, Fitch said.

Fitch issued the new, lower rating even though Armonk, New York-based MBIA asked the ratings company last month to stop assessing its credit worthiness. The two companies disagree over how much capital MBIA needs to absorb losses on the bonds it insures.

“It will be difficult for MBIA to stabilize its credit trend until the company can more effectively limit the downside risk” from collateralized debt obligations, Fitch said in the report.

[Bubblesitter]

Downgrade of MBIA today…

http://www.bloomberg.com/apps/news?pid=20601087&sid=a0KG6bCua6os&refer=home

MBIA Loses AAA Insurer Rating From Fitch Over Capital (Update2) By Emma Moody

April 4 (Bloomberg) — Fitch Ratings cut MBIA Inc.’s insurance rating to AA from AAA, saying the bond insurer no longer has enough capital to warrant the top ranking.

MBIA, the world’s largest bond insurer, would need as much as $3.8 billion more in capital to deserve an AAA, New York- based Fitch said today in a report. The outlook is negative, Fitch said.

Fitch issued the new, lower rating even though Armonk, New York-based MBIA asked the ratings company last month to stop assessing its credit worthiness. The two companies disagree over how much capital MBIA needs to absorb losses on the bonds it insures.

“It will be difficult for MBIA to stabilize its credit trend until the company can more effectively limit the downside risk” from collateralized debt obligations, Fitch said in the report.

[Bubblesitter]

Downgrade of MBIA today…

http://www.bloomberg.com/apps/news?pid=20601087&sid=a0KG6bCua6os&refer=home

MBIA Loses AAA Insurer Rating From Fitch Over Capital (Update2) By Emma Moody

April 4 (Bloomberg) — Fitch Ratings cut MBIA Inc.’s insurance rating to AA from AAA, saying the bond insurer no longer has enough capital to warrant the top ranking.

MBIA, the world’s largest bond insurer, would need as much as $3.8 billion more in capital to deserve an AAA, New York- based Fitch said today in a report. The outlook is negative, Fitch said.

Fitch issued the new, lower rating even though Armonk, New York-based MBIA asked the ratings company last month to stop assessing its credit worthiness. The two companies disagree over how much capital MBIA needs to absorb losses on the bonds it insures.

“It will be difficult for MBIA to stabilize its credit trend until the company can more effectively limit the downside risk” from collateralized debt obligations, Fitch said in the report.

[Bubblesitter]

Gotta add the accounting firms such as KPMG. This looks to be a replay of Enron like auditing scandals of a few years back. As investors, what kind of financial audit info can we trust? Lack of tranparency and confidence is gonna prolong this credit crunch on Wall Street.

http://www.bloomberg.com/apps/news?pid=20601103&sid=aXebBOZ3eBjQ&refer=news

“New Century Bankruptcy Examiner Says KPMG Aided Fraud (Update4) By Tiffany Kary

March 26 (Bloomberg) — New Century Financial Corp.’s bankrupt estate might have cause to sue its former accountant KPMG LLP and some directors and officers for improper accounting leading up to its bankruptcy, a court examiner said in a report.

The company, once the second-biggest U.S. subprime-mortgage lender, engaged in accounting fraud in 2005 and 2006 before filing for bankruptcy in April 2007, according to the 581-page report by court examiner Michael J. Missal unsealed today.

New Century “engaged in a number of significant improper and imprudent practices related to its loan originations, operations, accounting and financial reporting processes,” Missal wrote in the report. He said “KPMG contributed to certain of these accounting and financial reporting deficiencies by enabling them to persist” and in some cases “precipitating” a departure from “applicable accounting standards.”………”

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