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US government sues Standard & Poors


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Pat Gill

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It's finally happened, the ratings agencies, well Standard & Poors for a start, are being called to account over their actions leading to the sub prime mortgage collapse which of course launched the world into the largest financial crisis in decades.

The government's lawsuit says S&P was more concerned with making money than issuing accurate ratings. It says the company delayed updating its ratings models, rushed through the ratings process and kept giving high ratings even after it was aware that the subprime market was flailing even as it gave high marks to investments made of subprime mortgages. In 2007, one analyst forwarded a video of himself singing and dancing to a tune about the deterioration of the subprime market, with colleagues laughing.

US sues S&P over pre-crisis mortgage ratings - Yahoo! News
It's a pretty damning indictment of S & P and the ratings agencies in general, in fact it could be said that the ratings were pretty useless as measures of risk.

/mod/ thread here http://www.politics.ie/forum/current-affairs/205509-us-sues-standard-poor.html /mod/
 
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