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SEC Investigation of S&P: Could be Bad Move for Obama
ibtimes.com ^ | Aug 12 2011 | John Talty

Posted on 08/13/2011 3:01:20 PM PDT by NoLibZone

The U.S. Securities and Exchange Commission (SEC ) is now looking into potential insider trading by Standard & Poor's employees before the rating agency's decision to downgrade the U.S.'s long-term debt, according to Financial Times.

The SEC has asked S&P to disclose which employees knew of the downgrade decision before the public announcement, as part of a preliminary examination into potential insider trading.

The examination staff will likely try to decipher whether any person's with knowledge of the decision shorted stocks, or in any way benefitted from the U.S.'s downgrade to AA+ from an AAA credit rating.

The SEC may not be the only organization to take a look at S&P, though. The Senate Banking committee has also begun to look into the decision, according to a committee aide.

Multiple investigations into S&P could cause damage, especially if they come up unfounded. In an interview earlier this week with International Business Times, The Benchmark Company media analyst Edward Atorino does not think a SEC investigation is the wisest move for the United States.

"Mr. Obama could call up the head of the SEC and say get those bastards (at S&P) but I'd imagine that would leak out," Atorino said. "I don't know what they could do; it seems that the government has no recourse. All of the media would come to its aid if it leaked out."

As of yet no media has come racing in to defend McGraw-Hill's rating agency, but that doesn't mean it won't happen at some point.

Atorino admits the government is likely "pissed off," but there was little it could do to an independent ratings agency. Clearly if it can prove that the company's employees are guilty of insider trading it can make a big dent in S&P's reputation, but that at best is in the preliminary stage.

Right now both the SEC and Senate Banking committee could just be doing their due diligence, but the longer and costlier an investigation goes on, the more potential embarrassment for Preside Obama's administration, according to Atorino.

In the end, assuming the SEC charges don't turn up anything, S&P was just doing its job, says Atorino.

"(S&P) didn't do anything illegal or unethical," he said. "(S&P) did what it is supposed to do."


TOPICS: Business/Economy; Extended News
KEYWORDS: 88011; 88211; aug82011; economy; obamalost2t; sandp; spcreditrating

1 posted on 08/13/2011 3:01:26 PM PDT by NoLibZone
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To: NoLibZone

I called this right after the annoucement. Better not do ANYTHING to upset the O-HOLE!!!!


2 posted on 08/13/2011 3:03:07 PM PDT by Lockbar (March toward the sound of the guns.)
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To: NoLibZone

Obama says S and P is off by 2 trillion dollars in their rating of the US.

Obama spent 2 trillion more than he admits.


3 posted on 08/13/2011 3:03:44 PM PDT by NoLibZone (Life as Nancy Pelosi knows & wants it, must end, Life As Nancy Knows it is to raise Debt 10% annualy)
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To: NoLibZone

He hasn’t made any bad moves. This his ‘A Game” and the lefties are going to have to like it...many do...his base is the small but rabid (20 per centers) that want to install a Marxist regime. We are in the middle of a coup...it remains to be seen how spineless the Grand Old Potty will be in coping with it.


4 posted on 08/13/2011 3:04:42 PM PDT by jessduntno (Obama shanks. America tanks.)
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To: NoLibZone

“Multiple investigations into S&P could cause damage...”

to the ability of companies to go against the Marxist state-run machine.


5 posted on 08/13/2011 3:10:38 PM PDT by jessduntno (Obama shanks. America tanks.)
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To: NoLibZone
The SEC? They did a great job bringing Berni Madoff to justice. They were practically given a blue print into his operation three years before Madoff’s empire crumbled under its own weight.
6 posted on 08/13/2011 3:12:07 PM PDT by BluH2o
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To: BluH2o

The SEC is too busy adding Texas A&M.


7 posted on 08/13/2011 3:12:56 PM PDT by dfwgator
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To: NoLibZone
The Thugocracy begins... continues.

Warning to any other ratings companies — do not down grade the US, or else.

8 posted on 08/13/2011 3:18:29 PM PDT by dhs12345
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To: NoLibZone

Of the ten U.S. ratings agencies, S&P was the third to downgrade the U.S. A Chinese rating agency beat all three to the punch.


9 posted on 08/13/2011 3:18:40 PM PDT by gorush (History repeats itself because human nature is static)
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To: dfwgator

Thats funny. Both the big 12 and Obama won’t be around after 2012


10 posted on 08/13/2011 3:22:07 PM PDT by Psycho_Runner (I never voted for change, I prefer folding money.)
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To: dfwgator

Thats funny. Both the big 12 and Obama won’t be around after 2012


11 posted on 08/13/2011 3:22:18 PM PDT by Psycho_Runner (I never voted for change, I prefer folding money.)
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To: Psycho_Runner

I knew once I started seeing the ads for The Longhorn Network, A&M wasn’t going to stand for that.


12 posted on 08/13/2011 3:24:18 PM PDT by dfwgator
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To: NoLibZone

Is there any evidence to suggest insider trading, or is this instead just Hussein’s revenge fishing expedition?


13 posted on 08/13/2011 3:45:13 PM PDT by Neanderthal
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To: Neanderthal
Like being audited by the IRS.

You have to prove your innocense.

14 posted on 08/13/2011 3:59:54 PM PDT by dhs12345
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To: NoLibZone
If there are going to be all these investigations of S&P for daring to downgrade Obamastan to AA+, then investors will have to assume that some rating agencies are suffering undue political pressure. The consequence is that investors will have to give credence to rating agencies based in other parts of the world. Especially important would be the criteria that these organizations cannot be armtwisted by abusive pseudo-regulators.


15 posted on 08/13/2011 4:12:09 PM PDT by magooey (The Mandate of Heaven resides in the hearts of men.)
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To: NoLibZone
“All of the media would come to its aid if it leaked out”

What, they expect the state run media to come to the aid of Standard and Poor’s? Does this guy really believe that? Most of the media is part of the democRAT machine. They worship at the feet of Obama. The SEC should investigate Tim Geithner and George Soros?

16 posted on 08/13/2011 4:12:29 PM PDT by Flavious_Maximus
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To: dfwgator

FITFLOL


17 posted on 08/13/2011 4:50:01 PM PDT by DAVEY CROCKETT (1 John 2:22...the man who denies that Jesus is the Christ. Such a man is the antichrist...)
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To: NoLibZone

I can’t wait until they find the emails that prove that Standard & Poor’s was actually the entity behind “Fast and Furious” thus vindicating the ATF, DOJ, DHS,..

The downgrade was to create a diversion away from Standard & Poor’s sending guns to Cartels and Marxists.


18 posted on 08/13/2011 4:51:11 PM PDT by sockmonkey (No, I'm not serious..)
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To: NoLibZone
Actually it is the SEC that needs be investigated.

SEC Rewards Investigator Who Botched Madoff Probe

19 posted on 08/13/2011 5:14:04 PM PDT by opentalk
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To: Neanderthal

That’s what I was wondering, I have not seen any news to indicate that.


20 posted on 08/13/2011 5:44:01 PM PDT by visualops (Proud Air Force Mom)
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