HM...THE FREE MARKET DOESN'T ALWAYS SCREW UP

Moody's recent downgrade of 15 major worldwide banks seems to be an instance of the Free Market Fairy working properly.

UPDATE 6-Moody's cuts ratings of 15 banks, Morgan Stanley down 2 notches
Thu Jun 21, 2012 11:13pm EDT

By Rick Rothacker and Steve Slater

CHARLOTTE, N.C./LONDON, June 21 (Reuters) - Ratings agency Moody's downgraded 15 of the world's biggest banks on Thursday, lowering credit ratings by one to three notches to reflect the risk of losses they face from volatile capital markets activities...

"All of the banks affected by today's actions have significant exposure to the volatility and risk of outsized losses inherent to capital markets activities," Moody's Global Banking Managing Director Greg Bauer said in the announcement.