No question but in addition to guns we have to always watch what is going on in the background as well. During the calif. attacks many large financial institutions were downgraded while everyone’s attention was focused otherwise.
If you think this happened in a vacuum raise your hand...seeing no hands....
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http://www.marketwatch.com/story/jp-morgan-goldman-sachs-among-too-big-to-fail-us-banks-downgraded-by-sp-2015-12-03
Standard & Poor’s downgraded the credit ratings of J.P. Morgan Chase & Co., Goldman Sachs Group and six other major U.S. banks, saying it is no longer confident that the U.S. government would step in to support them in a future crisis.
S&P cut its ratings of the nonoperating holding companies (NOHC) of the eight U.S. banks determined to be “globally systemically important†by one notch. That has lowered ratings for Goldman Sachs GS, +2.59% Citigroup Inc. C, +2.95% Morgan Stanley MS, +2.53% and Bank of America Corp. BAC, +2.89% to BBB-plus, placing them just three notches above speculative, or “junk†status.
It cut J.P. Morgan to A-minus, and lowered State Street Corp. STT, +3.29% Bank of New York Mellon Corp. BK, +2.51% and Wells Fargo & Co. WFC, +2.71% to A.
The move comes as the Federal Reserve works to complete rules that will dictate the amount and type of capital banks must hold to absorb a major shock to the financial system. The Fed said in October that the country’s six biggest banks are facing a $120 billion capital shortfall under rules that will require them to hold large amounts of debt that can be converted into equity in a crisis.
See: Fed approves rule to limit emergency loans
“Based on our review of progress made toward putting in place a viable U.S. resolution plan, we now consider the likelihood that the U.S. government would provide extraordinary support to its banking system to be ‘uncertain’ and are removing the uplift based on government support from our ratings,†S&P said in a statement.
The rules will set a minimum level of ‘total loss-absorbing capacity’ (TLAC) that banks must have to limit the impact that the failure of a single large institution could have on the entire financial system and avoid the kind of taxpayer bailouts that were needed — and controversial — during the 2008 financial crisis. The rules are part of the Dodd-Frank Act, the set of regulations put in place to address the issue of ‘too big to fail.â€
If they raise rates chaos will rule and it all plays into 0’s plans. Many of the bankers in those institutions voted for him.