Moody's downgrade of credit rating of 12 UK banks

[Rodge2]

Does anyone know who the 7 smaller banks are that have been downgraded? I can't find any information about this. Thanks.

[SeaJayPea]

They're all mentioned in here.

http://www.bbc.co.uk/news/business-15211230

[Rodge2]

Thanks:)

[factor-fiction]

Apparently it was an expected outcome of the decision to make banks separate their two arms and the official view being put out is that it's not anything to concern us

[factor-fiction]

Another useful article here.
http://uk.finance.yah...s-3628224386.html?x=0

[Rodge2]

What do people think? Is it something to worry about. I've sold my Lloyd's shares today before they're worth nothing. In that article factor30 provided (thank you), it says the government has withdrawn its backing for the smaller institutions. Does this mean that investors in for example, West Bromich Building Society, no longer have their £85,00 cover for their savings? Or is it just that the govt will cover them but let the bank sink?

[twix123]

The £85,000 limit on compensation is still covered by the Financial Services Compensation Scheme (which is in fact covered by a levy on other financial institutions not the Government should a bail out be necessary).

Moody's downgrading, together with any similar downgrading by other rating agencies, such as Standard and Poors, only really affects the interest rate that the downgraded financial institutions have to pay when they borrow money from other banks, as their credit rating is deemed to be lower.