Bank of America: S&P May Downgrade US Again in November

[Hosnon]

Source: CNBC.com

Standard & Poor's may downgrade the long-term credit rating of the U.S. once again in less than three months after sending shockwaves through the bond and stock markets by stripping the nation of its top notch triple-A rating last week, according to an emergency Sunday night conference call for clients of Bank of America Merrill Lynch.

"We do expect further downgrades," said Ethan Harris, North American economist, on the call. "We doubt the newly appointed bipartisan commission will come up with a credible long-term deficit reduction plan. Hence by November or December we would not be surprised to see S&P downgrade the debt again from AA-plus to AA."

Read more: http://www.cnbc.com/id/44054807

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From the same folks who rated the CDO's as AAA.

[Demeter]

1. At the rate things are going BoA may be history by then

[dixiegrrrrl]

9. from you lips to god's ears...

Looking possible.

A.I.G. to Sue Bank of America Over Mortgage Bonds
http://www.nytimes.com/2011/08/08/business/aig-to-sue-bank-of-america-over-mortgage-bonds.html?_r=2

and
Bank of America is now totally skewered (as in can you spell U-N-D-E-R-R-E-S-E-R-V-E-D), as this process throws the entire existing settlement, which most certainly was cobbled together with the assistance of the purported legal adversaries so that the American financial system was not scuttled when BAC has to file for bankruptcy, out of the window.
Now that a politically upstart AG is in the pic, and now that he has raised some serious rucus, we expect, as noted above, that the final settlement ask will increase by about $15-20 billion, and in the process sent the company's CDS soaring as the fear of counterparty risk suddenly rears its ugly head in a self-fulfilling prophecy along the same lines as took down Lehman Brothers.
Prepare for a Bank of America public offering. And for our Paulson & Co. LP readers: pray that the billionaire sold his remaining shares in this toxic dump of a bank on which he once upon a time had a $30 price target."
http://www.zerohedge.com/news/got-bank-america-cds-new-york-ag-says-bacs-85-billion-settlement-unfair-and-misleading-bac-equi

And

JPMorgan Chase, NYMellon, Goldman Sachs, State St. Corp. debt ratings to be lowered.
http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=114x89111

So I would wonder not what's left of BOA.?

[aquart]

2. If we'd put them in jail they wouldn't be annoying us.

Something to remember.

[Ruby the Liberal]

3. IMO, better to set expectation now when the markets take the initial hit

than keep the rose colored-glasses on and ride out the second wave.

From the BoA/ML perspective, this makes sense.

[Amonester]

4. Now, where are all those Wikileaks emails we were promised?

Looks like time is running out...

(If published already, didn't keep up, my bad.)

[Demeter]

11. Posted on Anonymous Website March 14th

http://www.huffingtonpost.com/2011/03/14/bank-of-america-anonymous-leak-mortgage_n_835220.html

http://www.dailytech.com/Anonymous+Airs+Bank+of+America+Emails+From+Whistleblower/article21118.htm

Trouble is, they were very technical. Damning, but opaque to most people. Definitely not sexy enough for MSM.

[still_one]

5. Funny how the Asian markets are falling, the money seems to be going into treasuries /nt

[Hosnon]

6. Because we are still the best bet.

Can print dollars and the dollar is the world's reserve currency.

To me, it is similar to the "the first million is the hard part" phenomenon. We are at the top, and that provides a few extra perks.

[still_one]

8. Shhhh, don't let people know that the U.S. is not in danger of default, youl'll destroy the illusion

the MSM is trying to create

[joeglow3]

14. You realize printing our way out is about as bad as default?

Whatever you call it, massive pain would be inflicted on the working class.

[ixion]

12. You logic scaffold is shaky, at best

There is only an illusion of us being 'on top', and we are not going to remain the world's reserve currency much longer. There has already been talk of replacing it with something more stable. So the 'perks' you speak of can vanish as quickly as they appeared.

[jwirr]

7. Basically they are telling us if we do not elect a working government

they will downgrade us again. Divided government does not work. Or at least the kind of divided government that we have.

[flamingdem]

10. The owner of S+P is a big time Romney supporter, they want him in by trashing the econ nt

[Blue_Tires]

13. Almost reads like another "hostage' threat...

[joe1991]

15. Riddle me this, Batman

Aren't these the same rating agencies that were complacent in getting us into this mess?

They gave triple A ratings to worthless mortgage securities right up until the housing bubble burst.

Lets put confidence back in our markets by throwing half these a-holes in prison.

[Roland99]

16. But will BoA still be around in Nov?

[Roland99]

17. Bank of America losses grow, shares now off 14%