Financial System Riskier, Next Bailout Will Be Costlier, S&P Says

[Donnachaidh]

http://www.huffingtonpost.com/2011/04/19/financial-system-riskier-_n_851122.html

The financial system poses an even greater risk to taxpayers than before the crisis, according to analysts at Standard & Poor's. The next rescue could be about a trillion dollars costlier, the credit rating agency warned.

S&P put policymakers on notice, saying there's "at least a one-in-three" chance that the U.S. government may lose its coveted AAA credit rating. Various risks could lead the agency to downgrade the Treasury's credit worthiness, including policymakers' penchant for rescuing bankers and traders from their failures.

"The potential for further extraordinary official assistance to large players in the U.S. financial sector poses a negative risk to the government's credit rating,” S&P said in its Monday report.

But, the agency's analysts warned, "we believe the risks from the U.S. financial sector are higher than we considered them to be before 2008."

More at the link --

[WCGreen]

1. And yet there is a thread about S&P being coerced by the biog banks

to give them good ratings...

[DCKit]

9. "Give us what we want, and we won't destroy the economy." nt

[bluerum]

2. Note to S&P: Next time the people may just take you down instead.

[Demoiselle]

3. I can remember when S&P's were reference books in offices...

....Kind of like the Bible, or Webster's Unabridged.
I've already said this in a post.... Where the hell were they when during the days of worthless bundled mortgage stocks, "derivatives", and "credit default swaps," to name a few? This is a total crock of shit...

[msongs]

4. the next bailout will come from the pockets of corporate CEO's nt

[dixiegrrrrl]

5. The NEXT rescue??????????????

[walldude]

My first thought too... n/t

[walldude]

6. double post...

[Snoutport]

7. blatant blackmail

[conspirator]

8. The next bailout should be a head bailout with a guillotine nt