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Justice Dept. Investigating S.&P. Over Mortgages (Payback Time)
ny times ^ | 8/17/2011 | Louise Story

Posted on 08/17/2011 7:15:40 PM PDT by tobyhill

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.

(Excerpt) Read more at nytimes.com ...


TOPICS: Extended News; News/Current Events
KEYWORDS: chicagoway; creditrating; downgrade; mortgages; obamadowngrade; payback; standardpoors; thechicagoway; thugbama

1 posted on 08/17/2011 7:15:44 PM PDT by tobyhill
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To: tobyhill

They need to leave the US to protect their independence, try swiss


2 posted on 08/17/2011 7:19:16 PM PDT by dila813
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To: tobyhill
The investigation began before Standard & Poor’s cut the United States’ AAA credit rating this month,

The investigation may have been started before the rate cut but the results of that investigation are now a forgone conclusion.

3 posted on 08/17/2011 7:21:29 PM PDT by Pontiac (The welfare state must fail because it is contrary to human nature and diminishes the human spirit.)
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To: tobyhill

Ah, so nice to see the Chicago Thugs in action. I hope S&P prepared for this possibility.

I cannot stand obama. (little o, not a real god).


4 posted on 08/17/2011 7:21:33 PM PDT by bboop (Stealth Tutor)
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To: tobyhill

Ah, so nice to see the Chicago Thugs in action. I hope S&P prepared for this possibility.

I cannot stand obama. (little o, not a real god).


5 posted on 08/17/2011 7:21:44 PM PDT by bboop (Stealth Tutor)
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To: tobyhill

What took so long?


6 posted on 08/17/2011 7:36:41 PM PDT by Night Hides Not (My dream ticket for 2012 is John Galt & Dagny Taggart!)
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To: tobyhill

Der Fuhrer and his Gestapo are not happy campers right now. The folks down at S&P are about to get their butts handed to them. Never mess with der Fuhrer. This isn’t America anymore, Toto.


7 posted on 08/17/2011 7:44:52 PM PDT by FlingWingFlyer (Americans need to wean their government off of its dependence on foreign money.)
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To: AdmSmith; AnonymousConservative; Berosus; bigheadfred; Bockscar; ColdOne; Convert from ECUSA; ...

Thanks tobyhill.


8 posted on 08/17/2011 8:00:17 PM PDT by SunkenCiv (Yes, as a matter of fact, it is that time again -- https://secure.freerepublic.com/donate/)
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To: tobyhill

An investigation would lead back to banks then Congress itself, don’t expect much out of this probing. Maybe a scapegoat is found, at the most.


9 posted on 08/17/2011 8:04:40 PM PDT by Razzz42
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To: tobyhill

I have no problem with this. Selling bad loans caused this bitch.


10 posted on 08/17/2011 8:15:25 PM PDT by eyedigress ((Old storm chaser from the west)?)
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To: dila813

You are probably right. Make no mistake that Obama told Holder it’s payback time. These Chicago thugs operate like the mafia without tommy guns.


11 posted on 08/17/2011 8:17:51 PM PDT by Lumper20
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To: dila813

You are probably right. Make no mistake that Obama told Holder it’s payback time. These Chicago thugs operate like the mafia without tommy guns.


12 posted on 08/17/2011 8:18:02 PM PDT by Lumper20
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To: tobyhill

S&P and Moodys have the cash to pay attorneys to defund against the witch hunt. Fitch is a small player and cannot affort the full on assault of the department of justice.

That’s why Fitch didn’t downgrade the US.

Either way, the cow poop is going to hit the high speed propeller.


13 posted on 08/17/2011 8:19:17 PM PDT by Texas resident (Hunkered Down)
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To: eyedigress

This is payback, pure and simple.

The DOJ may have a cause of action but they had the same cause of action 3 years ago.


14 posted on 08/17/2011 8:30:43 PM PDT by tobyhill (Real Spending Cuts Don't Require Increasing The Debt)
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To: tobyhill

I understand.


15 posted on 08/17/2011 8:41:53 PM PDT by eyedigress ((Old storm chaser from the west)?)
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To: dila813
According to the market, the USA is BBB rated credit right now. S&P didn't tell even a good part of the truth, which is basically that the US' books are an accounting nightmare riddled with fraud, unfunded obligations, falsely stated numbers (e.g. inflation rate, unemploment rate) and other horrors that would turn a green shade white.

Now this is a pretty obvious political hit - the other major ratings agencies were playing MBS-rating games, relying on un-meetable CDS obligations and security tiering for risk sanitization - so the message is unmistakable.

But the problem for the Obama gang is that it's a public political hit. Who is going to believe another US rating agency now? They will ask: is that a real rating or is that the trade-off for not getting prosecuted? They will then look to foreign ratings agencies for real ratings, and find that lo and behold, the actual fiscal situation is that we are a BBB with a downgrade watch.

If they thought AA+ was a problem, wait until these thug tactics knock the country into junk status.

16 posted on 08/17/2011 9:30:14 PM PDT by icanhasbailout
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To: tobyhill
Had Standard & Poor’s let the credit rating stand at triple-A Holder's investigation never would have seen the light of day.
17 posted on 08/17/2011 10:31:03 PM PDT by Brad from Tennessee (A politician can't give you anything he hasn't first stolen from you.)
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To: icanhasbailout

Do you place the authority of S&P over that of the US government?

The situation is an interesting one, and reminiscent of Andrew Jackson’s situation, in the 1800s.

Think about it: A foreign entity, a corporation, has threatened the United States with a financial weapon. I mean, ignore whether the rating is fair or not; what matters here is that there is a power play from a foreign entity that threatens our country.

What do you think should be done, all fairness aside?


18 posted on 08/17/2011 11:33:51 PM PDT by belzu2010
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To: tobyhill
ERIC, I WAS ONLY KIDDING, MAN!
19 posted on 08/18/2011 3:12:11 AM PDT by Lonesome in Massachussets (Somewhere in Kenya a village is missing its idiot)
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To: tobyhill

You have got to Love this, So the Government is Going to Investigate S&P for rating those CraP mortgages the GOVERNMENT was Forcing Banks to Make to People who Couldnt Pay them Back TRIPLE A? Go ahead bring it on,Fannie and Freddie were Bundling these Crap things and Peddling them around the World as Triple A rated,Government backed,and Now the Government is saying they did not Know they were Crap but S&P should have Known?Who the Hell are they Kidding


20 posted on 08/18/2011 3:58:48 AM PDT by ballplayer
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Didn't the Bush administration tell them that they needed to stop the issuing of all these worthless loans?
Isn't this the Bwaney Fwank and Chris Dodd fiasco coming back to roost?
Shouldn't we bundle them up in the same lawzoot?
21 posted on 08/18/2011 5:06:21 AM PDT by evad (Obama needs to show us his green card)
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To: tobyhill

This was the main headline on Drudge earlier this morning, but has now completely disappeared, even from the “recent Drudge headlines” link. hmmm...


22 posted on 08/18/2011 6:12:24 AM PDT by Aunt Polgara
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To: belzu2010
Good morning.

S&P has the right of free speech, so it should be able to say whatever it pleases, without interference from the government. They haven't "threatened" the US with anything other than the truth about the nation's financial condition - which is far worse than even S&P admits to.

If you are concerned about actual threats being made by a foreign entity, I would suggest that this be at the top of your list: China must punish US for Taiwan arm sales with 'financial weapon'

Long story short, if telling the truth constitutes a "threat", the problem lies not with the truth-teller but with the underlying situation (in this case the US' financial condition) that makes it so.

If the leaders of this country were not borrowing and spending addicts, S&P could not hurt us no matter what it did. It's time to stop killing messengers and confront the real problem: we spend too much money.

23 posted on 08/18/2011 8:14:59 AM PDT by icanhasbailout
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