$this->bbcode_second_pass_quote('', 'U')S Inquiry Eyes S&P Ratings of Mortgages
The Justice Department is investigating whether the nation’s largest credit ratings agency, Standard & Poor’s, improperly rated dozens of mortgage securities in the years leading up to the financial crisis, according to two people interviewed by the government and another briefed on such interviews.
The investigation began before Standard & Poor’s cut the United States’ AAA credit rating this month, but it is likely to add fuel to the political firestorm that has surrounded that action. Lawmakers and some administration officials have since questioned the agency’s secretive process, its credibility and the competence of its analysts, claiming to have found an error in its debt calculations.
In the mortgage inquiry, the Justice Department has been asking about instances in which the company’s analysts wanted to award lower ratings on mortgage bonds but may have been overruled by other S.& P. business managers, according to the people with knowledge of the interviews. If the government finds enough evidence to support such a case, which is likely to be a civil case, it could undercut S.& P.’s longstanding claim that its analysts act independently from business concerns.
http://www.cnbc.com/id/44184348
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Justice Dept. investigating S&P
Justice Dept. investigating S&P
by Sixstrings » Thu 18 Aug 2011, 01:43:02
Well that doesn't look good, investigating *right after* a downgrade -- seems like retaliation. Wasn't there some noises in France too about investigating the ratings agencies?
The articles says the investigation began before the downgrade, but obviously someone has chosen to leak this now. I don't know, rather too coincidental to be coincidental I think.
So is it retaliation? A warning shot to any other agencies who may think of downgrading government?
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Re: Justice Dept. investigating S&P
by AgentR11 » Thu 18 Aug 2011, 02:15:34
Of course its retaliation.
Yes we are, as we are,
And so shall we remain,
Until the end.
And so shall we remain,
Until the end.
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Re: Justice Dept. investigating S&P
by Keith_McClary » Thu 18 Aug 2011, 02:46:35
Facebook knows you're a dog.
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Re: Justice Dept. investigating S&P
by EnergyUnlimited » Thu 18 Aug 2011, 03:53:33
I suspect that investors are clever enough to make their own rating of US government (and other governments) even if rating agencies cannot function anymore or are converted into propaganda outlets of bankrupt sovereigns.
Honest rating of US.gov would be somewhere in range B ---> CCC, means certainly below investment level.
If you must take additional loans to serve obligations related to previous ones or alternatively default, you are not an investment level borrower.
That is not a rocket science and no advanced maths is needed to prove it or understand it.
Honest rating of US.gov would be somewhere in range B ---> CCC, means certainly below investment level.
If you must take additional loans to serve obligations related to previous ones or alternatively default, you are not an investment level borrower.
That is not a rocket science and no advanced maths is needed to prove it or understand it.
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Re: Justice Dept. investigating S&P
by Outcast_Searcher » Thu 18 Aug 2011, 04:34:59
Yeah, don't actually fix the problem. Don't have regulations that ensure enough competition, or competent oversight of the ratings agencies.
Just "own" the agencies, and use threats and intimidation if they have the nerve to tell the truth. And of course, scream at them when they screw up -- that way the public may pay less attention to the idiots on Capitol Hill screwing up.
Yeah, our government has more and more credibility every month.
Between that and spending ourselves (via priorities from BOTH the left and the right) into bankruptcy is what drives me further into the libertarian camp all the time.
Me and the other 1% or so of folks who actually want to STOP the madness instead of just tweaking it (so it doesn't gore OUR ox).
Just "own" the agencies, and use threats and intimidation if they have the nerve to tell the truth. And of course, scream at them when they screw up -- that way the public may pay less attention to the idiots on Capitol Hill screwing up.
Yeah, our government has more and more credibility every month.
Between that and spending ourselves (via priorities from BOTH the left and the right) into bankruptcy is what drives me further into the libertarian camp all the time.
Me and the other 1% or so of folks who actually want to STOP the madness instead of just tweaking it (so it doesn't gore OUR ox).
Given the track record of the perma-doomer blogs, I wouldn't bet a fast crash doomer's money on their predictions.
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Re: Justice Dept. investigating S&P
by prajeshbhat » Thu 18 Aug 2011, 05:14:37
$this->bbcode_second_pass_quote('Outcast_Searcher', 'B')etween that and spending ourselves (via priorities from BOTH the left and the right) into bankruptcy is what drives me further into the libertarian camp all the time.
Again, you are one of those who think government spending is the cause of the failure of the private sector. I say its not. It is the symptom. The balance of payment of the government is largely dependent on the performance of the private sector. Government deficits follow the failures private sector, not lead it as the libertarians believe. Government runs huge deficits only to cover the failures of the private sector. Since the 1980's the private sector is USA has largely failed to create a lot of decent high paying jobs. So the government had to run deficits to provide provide the pretense of a healthy economy, even though the president was Ronald Reagan, an anti-government free-market fundamentalist.
In the 1990s there was the Tech-revolution and the private sector performed enormously well. So the government was able to reduce the deficits. Since 2000s the private sector is failing repeatedly. In 2008 it failed completely. The huge government deficits since then are just the attempts by the elite to pretend that the system is still solvent. Although the deficits are now so large that the failure of the American private sector is becoming totally obvious.
Nobody cares about the american corporations anymore. If you see the major international oil deals, the biggest winners everywhere are chinese corporations.
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Re: Justice Dept. investigating S&P
by EnergyUnlimited » Thu 18 Aug 2011, 05:34:18
$this->bbcode_second_pass_quote('prajeshbhat', '')$this->bbcode_second_pass_quote('Outcast_Searcher', 'B')etween that and spending ourselves (via priorities from BOTH the left and the right) into bankruptcy is what drives me further into the libertarian camp all the time.
Again, you are one of those who think government spending is the cause of the failure of the private sector. I say its not. It is the symptom. The balance of payment of the government is largely dependent on the performance of the private sector.
Physical limits of growth are current cause of failure of private sector.
Overregulation is augmenting these issues.
Government spending is only postponing inevitable total ruin for a while but also ensures that once it finally comes, it will be more complete one.
In the past when growth was still possible in principle, Keynesian stimulus and WW II allowed to extend a party for few decades more.
Now it is no longer the case so it is reasonable to expect total ruin of the system together with Soviet styled government bankruptcy but there will be no bailout, because there are no rich Aliens close enough to Earth.
So workers will have to learn to enjoy Bangladeshi standard of work and pay.
Naturally that applies for lucky one who have preserved their jobs...
$this->bbcode_second_pass_quote('', 'I')f you see the major international oil deals, the biggest winners everywhere are chinese corporations.
Nope,
Chinese corporations will fail together with a failure of Western consumer.
Again, this is related to limits of growth.
So future work for corporation will give you $1-2 a day, regardless is it American, Chinese or a Philippine venture.
And you will value such job and be thankful that you have it, if you do.
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