Sunday, 25 August 2013

Moody's warns US banks

On Friday 23-rd August, 2013 Moody's warns that it could downgrade the rating six of the biggest US banks. We too have issued a rating. However, this is a different, more modern rating - it is a Resilience Rating - because it measures the capacity of a business to resist shocks, extreme events and turbulence. Our globalized economy is, evidently, dominated by extreme events, shocks and exposed to contagion in virtue of its extreme interdependency and complexity. A Resilience Rating is, precisely, based on complexity. It doesn't speak of performance, it reflects the hidden fragility of a business and its structure.

The banks in question are: Bank of America, JP Morgan, Wells Fargo, Morgan Stanley, Goldman Sachs and Bank of NY Mellon. Moody's claims that Citi is also under review.

To view our Resilience Ratings of these banks click on the icons below.

Resilience = 58,7%, Resilience Rating: B

Resilience = 68.2%, Resilience Rating: BB+

Resilience = 76.0%, Resilience Rating: BBB+

Resilience = 61.7%, Resilience Rating: B+

Resilience = 80.5%, Resilience Rating: A

Resilience = 62.4%, Resilience Rating: BB-

Resilience = 64.8%, Resilience Rating: BB

Today, in a turbulent economy, the "Too Big To Fail" logic no longer holds - now it is "Too Complex To Survive".