Moody’s Ireland Cut Holds PIIGS Banks Hostage (AIB, IRE, NBG, STD, BBVA)
Moody’s has been on a warpath this week downgrading the PIIGS. The calls are late. Very late. These should have been about as telegraphed as a replay of a World War II outcome. Moody’s downgrade of Ireland by five notches…
Allied Irish Banks plc (NYSE: AIB) is down 5.4% at $1.23 versus a recent low of $0.92 and versus a 52-week low of $0.76. The Bank of Ireland (NYSE: IRE) is 5.6% at $2.53 compared to $1.44 in November.
In Greece, the National Bank of Greece SA (NYSE: NBG) has not yet traded but is indicated lower around $1.83 after a $1.86 close yesterday and versus a 52-week low of $1.65.
Banco Santander, S.A. (NYSE: STD) is down 1% at $10.74 this morning, but that is up from under $10.00 at the end of November. Banco Bilbao Vizcaya Argentaria, S.A. (NYSE: BBVA) is down 0.7% at $10.14 versus $9.21 about three weeks ago.
Our argument is not that these downgrades do not matter. These downgrades are just very late and they could have easily been anticipated by investors.
JON C. OGG
Contact [email protected] for any questions or corrections.
Jon Ogg has been a financial news analyst since 1997. Mr. Ogg set up one of the first audio squawk box services for traders called TTN, which he sold in 2003. He has previously worked as a licensed broker to some of the top U.S. and E.U. financial institutions, managed capital, and has raised private capital at the seed and venture stage. He has lived in Copenhagen, Denmark, as well as New York and Chicago, and he now lives in Houston, Texas. Jon received a Bachelor of Business Administration in finance at University of Houston in 1992. www.247wallst.com.