TV News LIES

Tuesday, Mar 03rd

Last update03:04:29 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...


Target to cut jobs in $2B growth strategy

Target to cut jobsTarget plans to invest billions of dollars this year streamlining its business, opening new stores that...

Walmart Gives 500,000 Workers A Raise

walmartIn a move that could alter the minimum wage debate and improve the image of the...

IRS Audits of High-Income U.S. Households Drop to 6-Year Low

tax auditThe U.S. Internal Revenue Service, struggling with a smaller budget, audited 7.5 percent of households with...

HSBC Got Away With Buying Cocaine Plane

HSBC Cocaine planeWhile the Justice Department was busy prosecuting American HSBC customers for tax evasion, it has taken...
 
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!