Moody’s Is About To Fire A Warning Shot Through UK’s Massive Banking System

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Getting some attention tonight is a Sky News report that on Tuesday, Moody’s will issue a big credit warning on 14 of the UK’s 18 biggest banks.It’s not a downgrade — it’s just putting them under review — but the announcement will almost certainly prompt more risk aversion, at least in the sector.

All of Europe has been getting slapped lately with credit warnings, causing cascading nervousness that’s showing up in equity and credit markets.

The pound is already selling off on the news.