TV News LIES

Sunday, Jun 25th

Last update05:20:13 AM GMT

You are here News Economy Report: Big profits drove faulty ratings at Moody's, S&P

Report: Big profits drove faulty ratings at Moody's, S&P

E-mail Print PDF

Standard & PoorAnalysts who reviewed complex mortgage bonds that ultimately collapsed and ruined the U.S. housing market were threatened with firing if they lost lucrative business, prompting faulty ratings on trillions of dollars worth of junk mortgage bonds, a Senate report said Wednesday.

The 639-page report by the Senate Permanent Subcommittee on Investigations confirms much of what McClatchy first reported about mismanagement by credit ratings agencies in 2009.

Credit rating agencies are supposed to provide independent assessments on the quality of debt being issued by companies or governments. Traditionally, investments rated AAA had a probability of failure of less than 1 percent.

But in collusion with Wall Street investment banks, the Senate report concludes, the top two ratings agencies — Moody's Investors Service and Standard & Poor's — effectively cashed in on the housing boom by ignoring mounting evidence of problems in the housing market.

TVNL Comment:  Oh, please. Don't you know that teachers' unions caused this debacle? Just asking...

More...


Most Recent Related Stories...


Ascena closing up to 650 clothing stores including Dress Barn

Ascena to close 650 storesBetween 250 and 650 retail stores including Ann Taylor, Dress Barn, Loft and Lane Bryant are...

Household debt tops 2008 peak ahead of financial crisis

Household debt in US at pre crash levelU.S. household debt has topped the record level reached in 2008, a milestone for the recovery...

Earn minimum wage in the US? You can afford to live in exactly 12 counties

Minimum wage earners have few places to liveA person working a full-time minimum-wage job will find it virtually impossible to rent an affordable...

In blow to Trump, GE backs NAFTA and voices support for Mexico

GE backs NAFTAGeneral Electric (GE.N) on Friday praised Mexico as a big part of its future and said...
 
America's # 1 Enemy
Tee Shirt
& Help Support TvNewsLIES.org!
TVNL Tee Shirt
 
TVNL TOTE BAG
Conserve our Planet
& Help Support TvNewsLIES.org!
 
Get your 9/11 & Media
Deception Dollars
& Help Support TvNewsLIES.org!
 
The Loaded Deck
The First & the Best!
The Media & Bush Admin Exposed!