How "The Market" lets itself down

After the news that Lloyds TSB had agreed their takeover of HBOS yesterday, shares in Lloyds TSB took a dive on news that credit rating companies had downgraded Lloyds TSB crdit rating because of some of HBOS's bad debt.

The problem is that as part of the deal, Lloyds has the right to sell the bad debt to the UK treasury, meaning that Lloyds credit rating should not have been affected.

Doesn't it show the absolute uselessness of "the markets" that they did not bother to find out the full facts of the deal and furthermore, why doesn't someone in the city of London start asking what is the point of credit rating agencies who have singularly failed to spot that there was going to be a credit crisis in the first place ?

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