Matt Taibbi Thinks That The Big Wall Street Banks Are About To Enter A Death Spiral
Apr. 20, 2012
We haven’t been hearing a lot from Matt Taibbi lately because he’s on deadline.
But he took a break from his furious writing to comment on this week’s bank earnings and the impending Moody’s downgrade of a few of the major Street players — BofA, Morgan Stanley, Goldman and Citi.
We know that earlier this week, Black Rock’s Larry Fink said that if some of these banks were downgraded, his massive asset management firm would have to stop doing business with them — they have stringent rules about ratings, you see.
To Taibbi, that’s a nail in the coffin. From Rolling Stone:
…when big money players stop trading with those firms, that’s when the death spirals begin.