Hedge funds will be all over the possible downgrade of bank stocks like MS. As they always do, Wall St will be capitalizing massively on doubt and uncertainty swirling around the banks. Get ready, we may see a massive, temporary plunge heading into, during and after May. Could be a good trading opportunity.
"Morgan Stanley, which was hit hard in the financial crisis, appears to be the most vulnerable. Moody's is threatening to cut the bank's ratings by three notches, to a level that would be well below the rating of a rival like JPMorgan Chase."
Why would you want to own shares in a firm that can't manage its business, and gets downgraded? That strikes me as lunacy. Gorman is an affront to common sense if that downgrade occurs on his watch, and shareholders,/clients/counterparties should take these guys to the woodshed and put them out of business once and for all. I am sick of hearing about Gorman and seeing hwo every initiative he takes is a disaster, or defies logic...I compare Gorman to Dimon the way I compare beef jerky to Filet Mignon.