Defrocked, Do you think this is good enough reason for Japan to tank tonight (They trade on 25th)?
biz.yahoo.com
weren't cautioning about something like this happening over the Christmas break?
<<New information provided to S&P about the banks' loan portfolios was a major factor behind S&P's decision to downgrade two Japanese banks and place four others on negative CreditWatch on Wednesday, he said.
''The banks have been coming up with additional problem loans that previously weren't reported,'' he said.
As more information becomes available, ''there is a good chance there will be more moves in the future,'' said Taillon.
Another factor that prompted the recent ratings actions was S&P's perception that the Japanese government was less willing to bail out Japanese financial institutions, Taillon said.
This was highlighted by the recent failure of Yamaichi Securities Co Ltd, formerly Japan's fourth largest brokerage, and Hokkaido Takushoku Bank, a major Japanese bank, he said.
''The fact that they were allowed to close their doors, means you have to be somewhat more cautious that things like that could happen in the future,'' said Taillon.
Regarding other factors behind the recent actions, Taillon said bad foreign loans from countries such as Korea were only a ''minor factor'' in the recent ratings moves.
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