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FBN's Charlie Gasparino says Wall Street firms are bracing for a Moody's downgrade and Morgan Stanley could face a 3-notch cut.
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-- breaking news word that the downgrade of the nation's big banks that everyone has been expecting could come as early as two day -- They got -- joins us on the phone Charlie.
-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- You know we did not put their deal but here's what we know from -- -- of the Wall Street firms themselves the big banks during the middle this one of the reasons why stocks are off today.
But bank stocks are out there when the replay -- that bank stocks are up that it -- all the Wall Street firms and banks.
Operations for a Moody's downgrade as early as today I would say one firms particularly -- a -- -- Morgan Stanley.
They could face -- three notched downgrade by Moody's you know we spoke to Dick -- -- -- analysts.
He said the issue for Morgan Stanley is whether to two or three he really believes that two or three notch downgrade -- -- -- into the -- basically big into the stock the street believes its three Morgan Stanley is selling those -- convinced it'll be too.
We'll see a book probably based on -- what we hear it from inside of firms.
We're probably gonna get back to that decision today but you know -- you know it probably won't won't be just Morgan Stanley but all all -- are more stick to their -- expect to get the biggest -- -- LB.
But what I did you know it'll be it could be all the banks today going to -- like I said this is what the bank saying they're bracing -- -- -- as early as today.
-- very important sometimes got -- usually occurs after the markets close.
So this is if this does happen days going to be pretty big -- -- will tell you.
-- stocks are off today because.
People think just think it's coming -- despite the evidently I expect.
Try before you -- quickening another you're -- an -- but bad about this can get some more details is exactly what.
-- the thinking is behind a particular the assault on Morgan Stanley from the credit agency.
Way what would you will Dwight Morgan Stanley's in the -- about the year especially.
Especially in the well I mean look -- look at look at what's going on with which Europe you know I've -- -- your program before it says -- others Morgan Stanley.
Stock price it's highly correlated.
To what's going on in Europe come primarily because they have exposure there.
They're not -- and the other thing is that not if they don't have boosted the balance sheet size at a JPMorgan are either Bank of America Citigroup.
So the market is discounting.
Problems in the market you know Dodd-Frank.
You know equity volumes are way off Morgan Stanley likely that lay -- that we were first report that.
Either debate discount these sort of problems more heavily when it comes to Morgan Stanley just because of their size because they're -- -- some correlation to what goes on in Europe.
And I doubt that they have an equity business that's not make a lot of money right out -- -- is but remember when you're smaller and you don't have all the more diversified mine.
You know that hits you harder so that's what they're looking at Morgan Stanley but -- -- -- on the soup.
Still the question is how much and I -- -- Morgan Stanley -- what -- paid attention to because today you know specific about it this sort of one notch downgrade.
James Gorman is going to be -- -- fires throughout that entire firm today at stake about what it's very.
He's gonna be really bad because he's telling people he thinks it's gonna be too.
Charlie Gasparino on the phone with breaking news on the banks in particular Morgan Stanley type thing.
