MORNING BRIEFING – By Benedict Brogan (Daily Telegraph).
Last night Moody’s slashed its ratings for Barclays, HSBC, RBS and Lloyds (Barclays saw its credit rating cut by two grades from Aa3 to A2. HSBC, RBS and Lloyds suffered a reduction of one)
George Osborne might be relieved to hear that this is – at least in part- due to the eurozone crisis.The downgrade coincided with a warning from the CBI that economic recovery was at risk of being “choked off by a lack of finance”. You can read the full story here.
The key point is banks are weakened in the markets, which means borrowing costs may be pushed up and hurt chances of a recovery. It also puts back chances of the taxpayer unloading its mega-stakes in the bailed-out banks.
Andrew Tyrie, Conservative chairman of the Treasury select committee, hits on this, saying:
“Any increase in the…
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