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Jack -- who's a Democrat from Rhode Island and was on the banking committee and we're gonna get his reaction to these downgrades.
We have -- with -- different areas aren't what what is your reaction to the downgrades that you've heard from Moody's of these.
Thanks well -- as you pointed out these are consistent with other rating agencies over the last several weeks and it.
To two points that were made -- about there cushion of capital but also there.
Processes and you know I I think one of the values -- like to see is that in rating agencies -- asking tough questions and making.
Good judgments that.
Again I think the banks themselves have they are gonna respond to these.
Ratings and there and they don't come as much of this prize -- the market probably fully discounted all of this information already.
Yeah actually have a sense of what we heard from Marty Nesbitt recruitment timing impacts that that he thinks the situations -- roots.
You know that this reaction -- things that unit to that we his situation was a little while back to you agree with -- -- died and I.
-- heard him indicate that these are typically lagged variables in terms of the analysis has been done has evaluated by the rating agency and then publish that there is not clear.
-- -- And I have not conversant enough about the balance -- the banks to be as insightful as as on the accommodative but.
I think again.
One good point here.
Is that all of these institutions are undergoing much more stringent scrutiny by the rating agencies than existed several years ago.
Land and I think that scrutiny.
It raises the bar in terms of what they have to do.
And provides the public with much more accurate information and frankly I I think that kind information is helpful in the long run so.
That this should be looked upon as just you know frankly -- -- tougher scrutiny it -- level of analysis and that could contribute to the success of the banks.
Sure because a lot of people in the financial community -- this situation with the rating agencies hasn't really changed that much.
And anti crisis and that's one of the things that we need to work on mountains.
Well I think they had taken a much.
More delivered him and much more careful and much more.
You know judgmental -- I'm -- the criticism of the rating agencies particularly not so much institutional rating the ratings of the securities is that it was rather a lack sit.
You know there are many securities that were -- at high levels that didn't pan out obviously.
And I think that one of the lessons has been for the regime he's is that they have to ask tough questions and make tough Paulson.
If -- -- to -- ear to ear on the side of being a little more strict.
That's one I think -- that -- that something that's happened though that that's a positive development whether it's continued.
We'll -- Concerned are you about the situation in Europe aunts and impacting our banking system here how closely watched in -- case.
Watching it very closely what happened in Europe we'll have definite around vacations here.
That that the elections in Greece.
World positive sign that it wasn't decisive.
That the European leaders are gathering they have to start taking some very.
Tough actions to key actor obviously is Germany.
There has to be a recognition that an austerity program alone is not going to be helpful it has to be balanced by growth initiatives that they've talked about a common.
You know banking evaluation system and regulation system that's a positive step.
And the other thing they have to -- move quickly mean seems every several months is another crisis -- a sort of and somehow worked the way through that crisis but just delay.
The next crisis and I think they have to be much more decisive much more comprehensive.
And Germany will be the key actor.
I mean what if they don't behavior -- -- there's a lot of people here that wonder.
You know is it possible to let -- -- currencies are obviously our financial system from how much impact ask.
You know there are some analysts who can tell you down to -- The decimal point what the impact might be up my sense over and and it's and I think it's.
Shared by many is that there's an international financial situation is so.
-- connected so interrelated when you have derivatives when you have products that are counter parties that you may be outside of Europe but have risk in Europe.
How all of this is gonna produce both AM immediate financial effect in and it's also the psychological effect.
You know it's serious problems -- hear -- -- investors here consumers here will I think be a little bit more portions and that doesn't help.
In terms of our economy so there's clearly I think both of financial and a psychological.
Interaction that can't be ignored.
All right thank you so much for joining us thank you very react to this -- we really appreciate it.
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