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Sun Feb 10, 2013, 12:06 PM

Execs off the hook at S&P [View all]

Source: Los Angeles Times

Execs off the hook at S&P

The federal and state lawsuits against S&P are well and good, but no people are on the hook in these cases. What kind of deterrence is that?

You may have heard last week about a couple of big lawsuits brought by federal and state governments, alleging that the credit rating agency Standard & Poor's concocted a fraudulent scheme that contributed to trillions of dollars in investment losses and the cratering of pretty much the entire world financial system.

Those are serious charges, and the federal government's demand for $5 billion in penalties isn't peanuts. Yet there's something bloodless about the lawsuits, for the simple reason that they don't point the finger at any particular person who was responsible for these dastardly doings.

For example, you won't find the name Harold McGraw III anywhere in the court papers. Who?

McGraw was chairman, chief executive and president of McGraw-Hill, S&P's parent company, in the period at issue, 2004 to 2007. (He's still in place today.) Did he profit from S&P's wrongdoing? Let's assume so: he not only owns 10 million company shares but received $44.5 million in compensation over those years, according to corporate disclosures. Did he know or care about what was happening at S&P? One would hope so because it was by far the most profitable domain in his empire, contributing an average of more than 70% of McGraw-Hill's operating profit.


Read more: Link to sourchttp://www.latimes.com/business/la-fi-hiltzik-20130208,0,1163345.columne

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Reply Execs off the hook at S&P [View all]
kpete Feb 2013 OP
valerief Feb 2013 #1
awoke_in_2003 Feb 2013 #21
L0oniX Feb 2013 #2
alfredo Feb 2013 #3
Angry Dragon Feb 2013 #4
Cirque du So-What Feb 2013 #5
Fuddnik Feb 2013 #9
Cirque du So-What Feb 2013 #11
alfredo Feb 2013 #14
elleng Feb 2013 #17
RickFromMN Feb 2013 #22
alfredo Feb 2013 #23
sulphurdunn Feb 2013 #6
Fuddnik Feb 2013 #7
BadgerKid Feb 2013 #8
Hugin Feb 2013 #10
bucolic_frolic Feb 2013 #12
alfredo Feb 2013 #15
valerief Feb 2013 #13
elleng Feb 2013 #16
fasttense Feb 2013 #18
snot Feb 2013 #24
elleng Feb 2013 #25
triplepoint Feb 2013 #19
Octafish Feb 2013 #20
dtom67 Feb 2013 #26
dotymed Feb 2013 #27
Theyletmeeatcake2 Feb 2013 #28