Tue Feb 5, 2013, 02:20 PM
marmar (67,785 posts)
S&P Analyst Joked of ‘Bringing Down the House’ Ahead of Collapse
(Bloomberg) Standard & Poor’s employees joked about the company’s 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 company’s 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 Department’s 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
7 replies, 992 views
S&P Analyst Joked of ‘Bringing Down the House’ Ahead of Collapse (Original post)
Response to 99th_Monkey (Reply #1)
Tue Feb 5, 2013, 02:50 PM
marmar (67,785 posts)
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.”
It's further down in the linked story.
Response to leftyohiolib (Reply #5)
Tue Feb 5, 2013, 05:28 PM
dixiegrrrrl (42,316 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"
Response to marmar (Original post)
Tue Feb 5, 2013, 04:27 PM
Octafish (48,131 posts)
6. Gee. Part and parcel of Timmy Geithner's HAMP plan to ''FOAM THE RUNWAY'' for the banks.
I'd ask that all these traitors and crooks live out their natural days in prison, but they're the government now.