Some interesting tidbits……

Moody’s Negative: Credit rating agency Moody’s released a reportforecasting a negative outlook for the U.S. banking system over the next 12 to 18 months. The agency cited-

• economic challenges,
• a challenging operating environment,
• prolonged low interest rates,
• high unemployment,
• fiscal policy uncertainties and
• the threat of contagion from the European sovereign-debt crisis

as the primary reasons.
Moody’s pointed out that banks are in recovery mode, but at risk of reversal if the economy takes a turn for the worse.

Retail Risk: In a trend banks should be monitoring, Moody’s has modified the way it rates retail loans, as concerns increase retail outlets will face increased competition from online.

Euro Zone: The European Commission has submitted a proposal that wouldallow it to supervise the 6,000 banks operating in the Eurozone, as it struggles to contain the financial crisis. The proposal would allow the ECB topull banking licenses and take other actions to stabilize the system.

Spanish Stress: As concerns increase around the financial system, Spaniardshave withdrawn a record $94B from their banks, an amount equal to about 7% of GDP.

And for the final piece of amazing information:

National Debt:The Treasury reports our national debt has nowsurpassed $16T.



Source: Banc Investment Daily