Tuesday, August 9, 2011

S & P downgrades several giants of the U.S. financial system

In the aftermath of the sovereign rating of the United States, the main agencies of the U.S. financial system and five insurance companies have lost on Monday "triple A" they enjoyed to date with the Standard & Poor's. Standard and Poor's announced Monday, 8 August, it lowered the rating of parastatals refinancing of mortgages Fannie Mae and Freddie Mac a notch, from "AAA" to "AA +" and the note of various banks and insurers.

This decision reflects "the direct" of Fannie Mae and Freddie Mac to the Federal government, justified the agency in a statement. It appears as a logical withdrawal announced Friday by S & P of the prestigious "AAA" rating in the United States enjoyed by issuers of the most reliable. Freddie Mac and Fannie Mae "were placed under guardianship in September 2008 and their ability to finance operations relies heavily on the government," said S & P.

In addition, the U.S. Treasury has supported organizations "by providing capital on a quarterly basis," a total of 164.4 billion dollars spent to keep them afloat. Standard and Poor's has announced that it lowered alongside notes of ten federal mortgage bank of "AAA" to "AA +" and the Federal Farm Credit Banks.

These decisions also "reflect one notch downgrade of note" of the United States, said S & P. Five insurers have also seen their ratings lowered to "AAA" to "AA +" by S & P: Knights of Columbus, New York Life, Northwestern Mutual, the Insurance Association of Teachers (TIAA) and the association of automotive services (USAA ).

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