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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsS&P Analyst Joked of ‘Bringing Down the House’ Ahead of Collapse
(Bloomberg) Standard & Poors employees joked about the companys willingness to rate deals structured by cows and sang and danced to a mock song inspired by Burning Down the House before the 2008 global financial collapse, according to a U.S. government lawsuit.
Two S&P analysts in April 2007 discussed the companys model for collateralized debt obligations, with one messaging that a deal was ridiculous and that S&P should not be rating it, according to the complaint filed yesterday in federal court in Los Angeles.
We rate every deal, the other analyst said in an instant message, according to the government filing. It could be structured by cows and we would rate it.
The analysts messages are among internal communications cited in the Justice Departments complaint against S&P and its parent, New York-based McGraw-Hill Cos. (MHP) The U.S. claims S&P defrauded investors by issuing ratings on billions of dollars in mortgage products while ignoring market risks, driven by a desire to increase revenue and market share. .................(more)
The complete piece is at: http://www.bloomberg.com/news/2013-02-05/s-p-analyst-joked-of-bringing-down-the-house-ahead-of-collapse.html
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S&P Analyst Joked of ‘Bringing Down the House’ Ahead of Collapse (Original Post)
marmar
Feb 2013
OP
whatever the reason im glad they are - but if you're correct ,when/if S&P backs off
leftyohiolib
Feb 2013
#5
99th_Monkey
(19,326 posts)1. So is it "burning" or "bringing"? There's a huge difference. ~nt
marmar
(77,081 posts)2. ........
According to the complaint, it began:
Watch out / Housing market went softer / Cooling down / Strong market is now much weaker / Subprime is boi-ling o-ver / Bringing down the house.
Watch out / Housing market went softer / Cooling down / Strong market is now much weaker / Subprime is boi-ling o-ver / Bringing down the house.
It's further down in the linked story.
dixiegrrrrl
(60,010 posts)3. Notice the "Just US" dept did not move against this fraud until
S&P threatened to downgrade the US market.
leftyohiolib
(5,917 posts)5. whatever the reason im glad they are - but if you're correct ,when/if S&P backs off
then the lawsuit will go away and that would be a let down -
dixiegrrrrl
(60,010 posts)7. Count on it.
Count on a settlement being made, no public details.
Interesting that even after the news that the ratings agencies were providing ratings dependent on how much they got paid by the banks that were rating them..even after THAT admission....they continue to be awarded "respect" for their ongoing ratings.
This really is the old mob shakedown pattern...
"Nice country you got there, be a shame if it were rated lower"
leftyohiolib
(5,917 posts)4. tag
Octafish
(55,745 posts)6. Gee. Part and parcel of Timmy Geithner's HAMP plan to ''FOAM THE RUNWAY'' for the banks.
http://blogs.reuters.com/great-debate/2012/08/06/tim-geithner%E2%80%99s-principal-hypocrisy/
I'd ask that all these traitors and crooks live out their natural days in prison, but they're the government now.
I'd ask that all these traitors and crooks live out their natural days in prison, but they're the government now.