Regulatory reform: little consensus on how much -or what kind- is needed. As the President unveils his financial regulatory reform proposal, Standard and Poors chose this morning to bluntly state that this was one of the reasons they lowered their ratings and outlook on 22 banks this morning:
"The actions reflect our belief that operating conditions for the industry will become less favorable than they were in the past, characterized by greater volatility in financial markets during credit cycles, and tighter regulatory supervision."
Stocks off lows midday. Modest pop in stocks at noon as Standard and Poors, in its second major report today, said that the 'AAA' long-term rating on the U.S. is not likely to change in the near term.
Cynical traders (there are one or two) immediately focused on the phrase "in the near term."
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