S&P cuts Russia's rating to BBB minus

S&P proved one more time they are useless idiots

they are forcing russian companies out of us markets to their home country ... the only winning guy of it is Putin
 
America is in deep trouble and these sort of actions will just cause more problems. They tried the SWIFT as a weapon and the BRICS started working on their own version. Now this sort of skullduggery. Just madness....... unless......... SOMEONE knows what they're doing.
 
Means nothing...as they testified in court after giving Lehman Bros AAA just days before they went bankrupt

" their rating is just an opinion"

[youtube]http://www.youtube.com/watch?v=zIGThxn_eGk[/youtube]
 
JulieW said:
America is in deep trouble and these sort of actions will just cause more problems. They tried the SWIFT as a weapon and the BRICS started working on their own version. Now this sort of skullduggery. Just madness....... unless......... SOMEONE knows what they're doing.
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Julie - what do you mean by using SWIFT as a weapon?
 
Cutting Russia out of the international payments system, like what they did to Iran I think.
 
Yes. SWIFT is how you pay your international creditors. If you have no access to that you're back in the days of international drafts and snail mail. The USA was hoping to cripple Russia's financial industry which it did for a short time, but they got around it and started working on their own version. USA is running out of ways to bully.
 
I just heard something on bloomberg about sanctions about the announced from the US :/
 
http://www.globalresearch.ca/putin-...tercard-deny-service-to-russian-banks/5380573
Russian President Vladimir Putin has signed into law a bill to create a national card payment system, the Kremlin press service said Monday.

The Russian parliament approved the bill last month.

Plans to establish a national card payment processing system emerged in response to Ukraine-related sanctions that saw several Russian banks denied service by global powerhouses Visa and MasterCard, troubling the general public and raising concern over the security of the country's financial system.

As a reaction to Crimea reunifying with Russia in mid-March, the US introduced targeted sanctions against Russian officials and Rossiya Bank, considered by the US Treasury to be a private bank for many Russian government officials.

Following the move, Visa and MasterCard stopped client operations for cardholders at Rossiya Bank, SMP Bank, as well as their subsidiaries Sobinbank and Investkapitalbank with no prior notice, causing a serious drop in the consumer confidence of the banks.

According to Russian Central Bank estimates, building the infrastructure for the launch of the national payment system may take up to six months, but the distribution of the cards to the public could take up to two years.

Visa and MasterCard have announced they were concerned about the future of their business in Russia in light of the new legislation.
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Visa and MasterCard have announced they were concerned about the future of their business in Russia in light of the new legislation.
- you think!!
 
JulieW said:
Visa and MasterCard have announced they were concerned about the future of their business in Russia in light of the new legislation.
- you think!!
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how those idiots who run these businesses make decisions?
was not it obvious that as soon as they cut Russia from their net, Russia gonna cut them?
 
http://rt.com/business/161088-russia-payment-system-gref/

Russia's payment system not replacement, but needed alternative to Visa, MasterCard

The Russian payment system is not a replacement for Visa and MasterCard, just a much needed alternative, head of Sberbank Herman Gref told RT. The statement comes as the two credit card firms said they will keep on operating in Russia.

"Let an alternative to the international payment systems be, the alternative that shows their global responsibility," Gref told RT Friday at the International Economic Forum in St. Petersburg. "It is unacceptable to destabilize lives and financial activities of the huge country because of any political tensions. The population of 150 million people shouldn't suffer."

However the head of Sberbank said he does not consider Russia's national payment system as a complete replacement to the foreign analogues, more as a local alternative.

After talks at the International Economic Forum in St. Petersburg, the first ones after the two international credit card firms disrupted their operations in Russia in a sanctions move, MasterCard and Visa said they'll maintain their presence in Russia. But on new conditions.

Under the new legislation coming into effect January 1, Russia will have the right to set an obligatory security deposit of up to 10 percent of the credit card companies' daily turnover, or about $100 million for each, Interfax has estimated. Under the first version of the legislation, the government asked for a 25 percent fee. This would have cost the payment systems $3 billion, more than five times higher than the companies' combined revenues, Morgan Stanley calculated.

The parties agreed that within the next 6 months Visa and MasterCard will be using processing within Russia and find a Russian owner for their subsidiaries in the country.
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