From ZeroHedge
''So what does the ratings downgrade mean? First, it means that counterparties of the major banks are going to be forced to begin pricing ratings risk into their credit limits for these institutions. For MS and GS in particular, the ratings downgrade is a major hit because these broker-dealers are not banks, lacking the funding base to survive a major period of liquidity stress.
The second and related issues is that Buy Side counterparties will now start to curtail business with MS and GS, again because they are not banks.''
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