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US sues Standard & Poor


Clanrickard

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Apr 25, 2008
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33,032
Why has this not happened earlier. And why do these guys still have so much sway?

US launches civil action against S&P over pre-crisis ratings - The Irish Times - Tue, Feb 05, 2013

As the piece says....

S&P, Moody's and Fitch have long faced criticism from investors, politicians and regulators for assigning high ratings to thousands of subprime and other mortgage securities that quickly turned sour.
And yet still a word from them and people make investment decisions in some cases they are obliged to disinvest if the ratings agency downgrades them. Hopefully this will soften their cough.
 

mido

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Aug 28, 2007
Messages
3,374
Good. Let's hope this becomes a class action suit and other countries and investors join in. Let's also hope directors and other individuals are also sued in an individual capacity.
and that there is a MR Claus, tooth fairy and easter bunny as well...
 

Ribeye

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Jul 12, 2011
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26,306
What a laughable sham, just trying to shift the blame,

The Govt is saying that the business model if the rating agencies is fraudulent, yet the rating agencies operate under licence from, and are regulated by, the govt,

It's like the taxi regulator suing a taxi driver for being paid for taking someone to their destination:)

The business model of the ratings agencies is deeply flawed, and I wouldn't give their ratings any credibility,

But it ain't illegal!
 

Ribeye

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But important people and institutions did.
And if the USA decided to skewer these outfits it could
In 2006 the govt and the Fed were also saying that the economy was robust and house prices would never collapse,

Are they also going to skewer themselves?
 

sondagefaux

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Jun 2, 2009
Messages
15,682
What a laughable sham, just trying to shift the blame,

The Govt is saying that the business model if the rating agencies is fraudulent, yet the rating agencies operate under licence from, and are regulated by, the govt,

It's like the taxi regulator suing a taxi driver for being paid for taking someone to their destination:)

The business model of the ratings agencies is deeply flawed, and I wouldn't give their ratings any credibility,

But it ain't illegal!
The government regulates driving and drivers operate under license from the government.

It regularly takes drivers to court for breaching those regulations.

You might want to read this article first, and the responses to the comments, before you start spouting your usual ignorant nonsense:

Ex-Moody's analyst: 'By 2006 it was toxic everywhere' | Joris Luyendijk | Comment is free | guardian.co.uk

And this one:

http://www.guardian.co.uk/business/2011/aug/22/ratings-agencies-conflict-of-interest
 
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Analyzer

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Joined
Feb 14, 2011
Messages
46,201
Any chance that we might see somebody suing a prominent Dublin newspaper who published glowing ebullient coverage of the Irish banks in the middle of the last decade ?

Whilst the same Irish banks were spending a fortune on advertising in the same newspaper ?
 

Ribeye

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Joined
Jul 12, 2011
Messages
26,306
The government regulates driving and drivers operate under license from the government.

It regularly takes drivers to court for breaching those regulations.

You might want to read this article first, and the responses to the comments, before you start spouting your usual ignorant nonsense:

Ex-Moody's analyst: 'By 2006 it was toxic everywhere' | Joris Luyendijk | Comment is free | guardian.co.uk

And this one:

Ratings agencies suffer 'conflict of interest', says former Moody's boss | Business | The Guardian
But they're not accusing them of breaching the regulations are they?

They're being accused of not being independent because they are paid to rate securities by the issuers of said securities, which wasnt against the regs, and still isn't,

It like a driver being charged with speeding because he was doing 40 in a 60 zone,

I'm not sticking up for the agencies, they're a bunch of scam merchants,

But the govt knew full well what they were doin all along,

Sorry for upsetting you with all my ignorent nonsense,
 

Hewson

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Joined
Apr 29, 2009
Messages
8,338
Why has this not happened earlier. And why do these guys still have so much sway?

US launches civil action against S&P over pre-crisis ratings - The Irish Times - Tue, Feb 05, 2013

As the piece says....



And yet still a word from them and people make investment decisions in some cases they are obliged to disinvest if the ratings agency downgrades them. Hopefully this will soften their cough.
This is great news. Ratings Agencies have wreacked havoc on financial markets and in the ecoomies of countries worldwide for far too long. Reports of favoured clients getting early warnings of upcoming upgrades or downgrades and their bizarre ratings system left them with zero credibility. Anglo Irish Bank had a triple A rating from these parasites twelve months before it wrecked this country.

I hope they get buried.
 

seanmacc

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Joined
Jan 10, 2009
Messages
1,022
You have to laugh.

Like Ireland U.S politicians were championing the cause of free cheap money to everyone. They didn't care any more than our politicians cared. After all someone you puts themselves into mortgage servitude is not going to rock the boat, go on strike or question what their political masters are doing for fear of losing their job and made homeless. Whilst the ideals and buzz words synonymous with the "American Dream" are spouted giving them false hope of a better life. That is why the American working class, like the Irish working class (to an extent) are so apathetic and tolerate the same people shafting them over and over again.

That is why the Occupy movement in the US has taken so many of the political establishment by surprise and has them very rattled.

This action is a mere sideshow and the political establishment shifting blame from their own failings.
 

Dan_Murphy

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Feb 22, 2010
Messages
3,811
That is why the Occupy movement in the US has taken so many of the political establishment by surprise and has them very rattled.
The occupy movement is a joke, there is no way they have anyone rattled.
 

sondagefaux

Well-known member
Joined
Jun 2, 2009
Messages
15,682
But they're not accusing them of breaching the regulations are they?

They're being accused of not being independent because they are paid to rate securities by the issuers of said securities, which wasnt against the regs, and still isn't,

It like a driver being charged with speeding because he was doing 40 in a 60 zone,

I'm not sticking up for the agencies, they're a bunch of scam merchants,

But the govt knew full well what they were doin all along,

Sorry for upsetting you with all my ignorent nonsense,
No, the US government is suing them for failing to meet the legal requirements of the Financial Institutions Reform, Recovery and Enforcement Act, 1989.

Justice Department spokeswoman Adora Andy declined comment. An S&P official said the company was told it would be charged under the Financial Institutions Reform, Recovery and Enforcement Act. That statute dates back to the savings and loan crisis in the late 1980s and early 1990s.
WASHINGTON: Is U.S. suit against rating agency S&P actually retaliation? - Business Breaking News - MiamiHerald.com

In other words, it's accusing them of breaching the regulations set out in a law that's been in place since 1989.

Bill Text - 101st Congress (1989-1990) - THOMAS (Library of Congress)

The DoJ is bringing the case under the Financial Institutions Reform, Recovery, and Enforcement Act, which was enacted in 1989 in response to the Savings & Loan crisis. Nearly a year ago President Barack Obama announced the creation of a mortgage fraud taskforce, which the DoJ said would use this statute. This would be the first significant case led by the department.

The law, which allows it to file a civil lawsuit alleging criminal fraud against financial institutions, enables the US to seek civil penalties.
http://www.ft.com/cms/s/c175fc48-6f03-11e2-b6da-00144feab49a,Authorised=false.html
 
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