Photo: Morgan Stanley
On Thursday, markets tanked and bank stocks whipsawed on rumours that Moody’s would downgrade the world’s biggest banks. The media made a bing stink about it.However, many experts were taken surprised by the volatility since most of the banking sector’s troubles were well-known. Furthermore, Moody’s gave the heads up in February.
Betsy Graseck, Morgan Stanley’s top banking analyst, summed up her entire reaction to yesterday’s downgrade announcement in just one sentence.
No change to EPS as we don’t expect much share shift given that these ratings changes had been telegraphed four months ago.
There you have it. No change. No surprise.
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