Skip to comments.The Obama Hypocrisy: US sues S&P over pre-crisis mortgage ratings
Posted on 02/08/2013 6:33:10 AM PST by Madhattan
In charges filed late Monday in Los Angeles federal court, the Justice Department said S&P gave high marks to mortgage-backed securities that later went sour, even though it knew they were risky. The government said S&P misrepresented the risks because it wanted more business from the banks. The case is the government's first major action against one of the credit rating agencies that stamped their seals of approval on Wall Street's mortgage bundles. It marks a milestone for the Justice Department, which has been criticized for failing to make bigger cases against the companies involved in the crisis. "Put simply, this alleged conduct is egregious -- and it goes to the very heart of the recent financial crisis," Attorney General Eric Holder told a news conference Tuesday. He called the case "an important step forward in our ongoing efforts to investigate and punish the conduct that is believed to have contributed to the worst economic crisis in recent history.
(Excerpt) Read more at foxnews.com ...
Duh, in July, 2008 US Senator Crissy Dodd stated that all way just fine in the US Regulated Housing Market.
Double Duh, what Federal Bank Regulators has been sacked so far for THEIR dereliction of duty?
Maybe what we need is a Class-Action suit against “Sub-Prime Barney and his pal Dodd?
BTW, will the US Housing Recession of September, 2008 become know as the Fannie Bubble?
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