Standard & Poor’s Changes Its Tune On Business Practices For Legal Defense

By: Monday April 29, 2013 10:10 am

Standard & Poors, one of the major credit rating agencies, has done an interesting pivot in defining itself amidst a Justice Department civil suit. Like all the major rating agencies S&P is paid by those whose securities it rates.  This, quite obviously, is a conflict of interest in how it rates securities because if it [...]

DOJ Suing Standard and Poors For $5 Billion Fraud Scheme

By: Wednesday February 6, 2013 7:02 am

The Department of Justice has filed a civil lawsuit against Standard and Poors alleging that S&P engaged in a scheme to defraud investors in structured financial products known as Residential Mortgage-Backed Securities (RMBS) and Collateralized Debt Obligations (CDOs). The lawsuit alleges that investors, many of them federally insured financial institutions, lost billions of dollars on [...]

Australian Court: Standard and Poor’s Liable for Bad Ratings on Securities

By: Monday November 5, 2012 12:26 pm

This will get approximately no attention today, but a federal court in Australia ruled that Standard and Poor’s, the credit rating agency, lied to investors when they awarded their highest, triple-A rating to derivative securities that lost their value within two years of purchase. The court ruled for a series of local councils in Australia, [...]

Standard and Poor’s Report Strengthens Wall Street’s Hand in Fight Over Volcker Rule

By: Tuesday October 23, 2012 8:30 am

Standard and Poor’s estimates that the Volcker rule, due to be finalized at the end of the year, will eliminate $10 billion from bank profits annually. This is a sharp increase in the perception of the Volcker rule’s impact, and it comes before the extent of the rule is even known. “We currently estimate that [...]

Spain Continues to Resist Pressure for Bailout

By: Friday October 12, 2012 10:45 am

This refusal on the part of Spain to request a bailout, and the nasty conditions that would follow, so the European Central Bank can put its bond-buying program into motion, has really frustrated those trying to stage-manage Europe. The credit rating agency Standard and Poor’s, in league with these forces, downgraded Spanish debt to increase [...]

Dimon Doesn’t Know If JPM Broke the Law in Fail Whale Trade

By: Saturday May 12, 2012 9:20 am

Visit msnbc.com for breaking news, world news, and news about the economy These quotes from Jamie Dimon’s upcoming appearance this weekend on Meet the Press are a bit out of character: David Gregory: Did the bank break any laws? Did it violate any accounting rules or SEC rules? Jamie Dimon: So we’ve had audit, legal, [...]

S&P: Greek Debt Restructuring Would Be a Default

By: Tuesday January 24, 2012 8:55 am

Standard and Poor’s has become the second rating agency to say that, regardless of the conclusion of the Greek debt restructuring, they would judge the country as in “selective default”. With two rating agencies – Fitch is the other – now on the record about default, it’s almost certain that the announcement of the deal, [...]

European Bailout Fund Downgraded

By: Monday January 16, 2012 12:55 pm

As expected, Standard and Poor’s followed up their downgrade of various Eurozone countries last week with a downgrade of the European bailout fund, the EFSF, which has been funded by many of those downgraded countries, in particular France and Austria. This is important because EU leaders at one point wanted to leverage up the EFSF [...]

European Crisis: Multiple Credit Downgrades, Greek Debt Talks Collapse

By: Friday January 13, 2012 2:33 pm

Europe has lived in an almost perpetual state of collapse lately, with promising deals followed by despair. Today was one of the despair days. First, Standard and Poor’s cut the credit rating for nine Eurozone nations, including France, which previously had AAA-rated debt. S&P lowered its long-term rating on Cyprus, Italy, Portugal and Spain by [...]

60 Minutes Shines Spotlight on Persistent Mortgage Fraud

By: Monday December 5, 2011 1:39 pm

If the President wants to show the country that he now wants to give Americans a fair shake and break up the “invisible government” that exists in parallel with Wall Street, he could give a statement on last night’s 60 Minutes story on two whistleblowers at mortgage originators who stand ready to work with the [...]

S&P Downgrades Big Banks

By: Wednesday November 30, 2011 7:45 am

Steve Randy Waldman gives the last word on how the banks were bailed out, contra the popular opinion that TARP “worked.” I appreciate this analogy: Suppose my kid’s meth habit got the best of him. He’s needs to come up with $100K quick or his dealer’s gonna whack him. But he’s a good kid, really! [...]

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