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NY Times: Justice Dept. Now Investigating S&P

Aug. 17, 2011 11:23pm Jonathon M. Seidl

WASHINGTON (AP) — The New York Times reports that the Justice Department is investigating whether the Standard & Poor’s credit ratings agency improperly rated dozens of mortgage securities in the years leading up to the financial crisis.

A story on the newspaper’s website late Wednesday cites two people interviewed by the government and another briefed on such interviews as its sources.

The newspaper says the investigation began before Standard & Poor’s cut the United States’ AAA credit rating this month, but says it’s likely to add to the political firestorm created by the downgrade.

According to people with knowledge of the interviews, the Justice Department has been asking about instances in which the company’s analysts wanted to award lower ratings on mortgage bonds but may have been overruled by other S&P business managers.

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Comments (131)

TomFerrari
Posted on August 18, 2011 at 1:06am
KILL THE MESSENGER!!

All they did was tell the king and his court that they weren’t wearing any clothes.

They EARNED their downgrade. They deserve the “credit” for attaining an “AA”.
It took them YEARS – DECADES of spending OUR money, well beyond OUR ability to keep feeding them more of OUR MONEY.

This is just more Chicago-thug, heavy-handed politics from obama and his henchman, holder.

.
.
.

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- ProbIemSoIver
  Posted on August 18, 2011 at 1:09am
  Who can we get to Investigate the Justice Department ?
  
  Report this comment
- DarkFire
  Posted on August 18, 2011 at 1:50am
  a phoney investagation for the justice department. what do you all expect, the market is the casino, the brokers and traders are the workers in the casino, and the people of america and the world are the players in this casino.
  
  only in this casino you can not win, cause they control everything. i do not understand anyone who invest in the stock market, it is along the same lines of saying, hey will you take this $200 from me and play blackjack with it for me. Don’t be fooled people, anyone can fix the game. if you want to invest in somthing take your money and buy a business, at least you can see the return on your investment!
  
  Report this comment
- Misdirection
  Posted on August 18, 2011 at 1:54am
  You may look at it another way. S&P downgraded the US, so when they finally uncover what is happening there, S&P will just say its because of the downgrade… Wait for tomorrows headline.
  
  Report this comment
- Misdirection
  Posted on August 18, 2011 at 2:01am
  Also… As all of the conservative talk show host said, The US will not default on its debt whether it passed the credit raise or not. So, why is S&P the only credit agency that downgraded the US? When we had no risk of default.
  
  Report this comment
- politicaljules
  Posted on August 18, 2011 at 2:06am
  We don’t have a debt problem, or an S&P problem, or a racist, or even a teaparty problem!
  
  We have a SPENDING problem!
  
  So easy even a cave man could figure it out.
  
  Report this comment
- Misdirection
  Posted on August 18, 2011 at 2:08am
  @PJules
  
  Couldn’t agree more.
  
  Report this comment
- beekeeper
  Posted on August 18, 2011 at 6:39am
  @MISDIRECTION – I too am shocked that S&P didn’t appreciate that we made clear our intentions to borrow whatever money we needed to pay our past debts.
  
  Remember, S&P telegraphed their concerns back in April & again in June/July – they wanted to see $4 Trillion in real spending cuts over ten years, instead they watched our politicians act like children (both sides) and agree to $2.4 Trillion in cuts, with any responsibility farmed out to (yet another) “commission” like Simpson Bowles, and no real cuts in spending until 2017 (when 70% of the cuts take effect).
  
  If we had done what Simpson/Bowles recommended, the downgrade would have never happened.
  
  Report this comment
- Ronko
  Posted on August 18, 2011 at 7:18am
  Why am I not surprised by this news.
  
  Report this comment
- smithclar3nc3
  Posted on August 18, 2011 at 7:57am
  Mean while victims are piling up from the ATF/DOJ attempt at defacing current gun legislation. At what point do the people say enough and turns it’s back on the liberal DOJ and forcfully remove all
  members that have an agenda other than protecting and enforcing the Constitution
  
  Report this comment
- smithclar3nc3
  Posted on August 18, 2011 at 8:05am
  misdirection,
  S&P didn’t downgrade on the fear of default today they downgraded the U.S. because giving the current rate of growth our debt will and our GDP projections America is heading fast towards insolvency.
  You know credit card companies will cut limits based on your financial situation whether you continue to make the minium payment or not. IT’S THE SAME PRINCIPLE ON A MUCH LARGER SCALE.
  The real question is why are the other credit agencies being complissant in America continuing down the wrong path.
  
  Report this comment
- Hobbs57
  Posted on August 18, 2011 at 8:07am
  I would start with Soros maybe. I bet you he cut a deal with S & P, like a billion or more. Just as I suspect Obama won’t have any problem getting his Billion for campaigning this year. Soros has plenty enough avenues to distribute it trough. I GUARANTEE you, Soros sees his actions like Robin hood, stealing from the rich and making us poor.
  
  Report this comment
- GhostOfJefferson
  Posted on August 18, 2011 at 8:18am
  While the term “tyranny” is thrown about far too casually here, this is an actual case of the government acting like a third world thugocracy, in a very clear and absolute manner. Punish the enemies, “investigate” those who make the regime look bad, all that rot.
  
  It is such a terrible thing that this regime is turning this nation into.
  
  Report this comment
- old white guy
  Posted on August 18, 2011 at 8:44am
  sure they started before the rating cut. time to go after doj.
  
  Report this comment
- Montana Made
  Posted on August 18, 2011 at 11:32am
  VERY typical of the DOJ under Obama- if you don’t like what someone says about you- INVESTGATE THEM and if it doesn’t go your way- SUE THEM (remember Arizona??)!!!
  
  Report this comment
- Montana Made
  Posted on August 18, 2011 at 11:35am
  So politicaljules-
  
  Are you saying that the Liberal Left doesn’t even rate as CAVEMEN since they can’t seem to figure out it’s a spending problem rather than a taxation or an over-regulation problem??
  
  funny stuff…
  
  Report this comment
- JRook
  Posted on August 18, 2011 at 1:21pm
  @Misdirection You like the talk show hosts clearly don’t understand bonds, bond covenants and what the danger is when politicians who should know better repeat incorrect statements. A bond default is not merely the act of not paying the interest on the bond and bond ratings have more to do with the perceived risk of current and future debt. So when politicians say the debt ceiling doesn’t have to be raised and we won’t default they create a lot of risk. S&P was right on the money with the downgrade. We need to balance the current budget with equal cuts across the board, including defense. However, the longer term debt which represents past spending, $10 trillion of which occurred under Reagan, Bush Sr. and Bush Jr. has to be addressed with some form of tax that is earmarked for the debt. The biggest waste of money over the past 10 years has been our involvement in wars that provide us nothing, even if we win. We aren’t even smart enough to have Iraq pay us back with cheaper oil. Geez even Ryan’s poorly conceived plan does not address the deficit for 10 years.
  
  Report this comment
- carbonyes
  Posted on August 18, 2011 at 2:51pm
  How true it is! The narcissist-in-chief got more than his tail feathers ruffled. It’s payback time -Chicago style politics.
  
  Report this comment
- AvengerK
  Posted on August 18, 2011 at 5:29pm
  Typical Obama administration and liberal reaction..attack the messenger.
  Today Los Angeles decided it will no longer employ S&P to rate the county’s credit. They’re like scolded children snapping at their disciplinarian. And not unpredictably…Obama gets the Justice Department to intimidate S&P. Never mind that countless municipal and private debt securities could be adversely affected by a legal decision against S&P. Nevermind all the holders of that debt getting royally scr#wed. .
  There’s a big difference between rating private companies and rating government bodies. Private companies can hide their books from agencies like S&P. The government cannot, it is meant to be public record.
  But S&P must be brought to heel…it’s for the people man. Everytime I think I’ve wretched my last upchuck at Obama, he finds something new to nauseate me with.
  
  Report this comment
Mr.ManZ
Posted on August 18, 2011 at 12:50am
Oh good lord, these whinny lil bastards are all upset because S&P downgraded their credit rating. As for the investigation going on before the ratings downgrade is a bunch of crap. The stupidity that runs rampant throughout the obama administration is utterly unbeleiveable and totally obvious !

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- db321
  Posted on August 18, 2011 at 12:58am
  Get ready – if you don’t play by Obama’s rules – it could get bad. The AG needs to be investigated for starters “Fast and Furious.” He Knew!
  
  Obama and his thugs all need to go.
  
  Report this comment
- walkwithme1966
  Posted on August 18, 2011 at 2:40am
  Hey I am all for investigating them in this case – which is giving the banks that were failing a AAA rating – that was wrong and there is something there that needs to be investigated. http://wp.me/pYLB7-1sy
  
  Report this comment
- RepubliCorp
  Posted on August 18, 2011 at 2:51am
  WALKWITHME1966 do you want a investigation into why Obama and Holder sold guns to drug dealers that ended up killing border agents? (if not) go away commie low-life lib
  
  Report this comment
- hauschild
  Posted on August 18, 2011 at 8:13am
  Why do I get the sneaking suspicion that the next election is going to be thoroughly “investigated”?
  
  The people that make up the a large part of the left wing in this country and most of the Obama administration is clearly anti-American. It’s so obvious it’s laughable.
  
  Report this comment
powhatan
Posted on August 18, 2011 at 12:46am
Eric Holder is the biggest crooked weenie up there!

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powhatan
Posted on August 18, 2011 at 12:44am
It was the frankendoddsorobama desease that made them do it!

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- starman70
  Posted on August 18, 2011 at 6:31am
  ROFALOL!!! The disease, you mention, which is infecting Washington born out of progressive, liberalistic, communist inspired thought.
  
  The typical answer from Washington idiots is: If you don’t like what an organization says or does
  - – - INVESTIGATE THEM!! Harass them and cause them untold thousands of dollars defending their position. Oh, and by the way, make work for their Congressional lawyer buddies. To defend any position in Washington, a company or organization being “Investigated” must employ a bevy of lawyers. This is a “Shovel Ready Project” created by Congress and aimed at putting lawyers to work.
  
  Maybe the Congressional idiots should investigate Eric Holders “Fast and Furious” gun running scheme and fire the two lackeys that ran it.
  
  Report this comment
ezeewhiz
Posted on August 18, 2011 at 12:32am
Anybody looking under the two rocks most responsible for housing market debacle, Rockfrank & Rockdodd?

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- AvengerK
  Posted on August 18, 2011 at 5:35pm
  A GOP house and Senate should be able to overturn those rocks..right now they’re part of a democrat stonewall.
  
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Dougral Supports Israel
Posted on August 18, 2011 at 12:29am
They can investigate anyone they want but they cannot change the laws of mathematics. If they keep on borrowing at this rate it will soon be apparent to all lenders that we are broke, no matter what the ratings agencies are browbeaten into saying.

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Darmok and Jalad at Tanagra
Posted on August 18, 2011 at 12:22am
See, don’t donate to obummer and pay back is a Pelosi. His bus don’t run on hope and change, it needs dollars, and because Bernake devalued the dollar, it needs mucho dinaro. So anyone who isn’t pulling their share and pumping his campaign, here comes the judge. The next thing he will do is sick the DOJ on any corp that hasn’t maxed their Dem donation, because he knows where you live, how you voted, and who you gave to. Acorn will be summoned, or as the Wicked Witch said, “Fly Monkeys, Fly”.

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- MastrSSG
  Posted on August 18, 2011 at 12:29am
  Why dont they investigate Frank, Dodd, Gheitner………..
  
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- Darmok and Jalad at Tanagra
  Posted on August 18, 2011 at 12:35am
  I heard Barney Frank is already probing those two.
  
  Report this comment
tckid17
Posted on August 18, 2011 at 12:14am
smells like intimidation, what do you think?

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- MastrSSG
  Posted on August 18, 2011 at 12:27am
  Why do you think the rest of them haven’t down graded the USA’s credit before now?
  
  Report this comment
- vtxphantom
  Posted on August 18, 2011 at 3:32am
  We need a RICO investigation of the Obama regime.
  
  Report this comment
LadyGOP
Posted on August 18, 2011 at 12:14am
Unbelievable

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kalli
Posted on August 18, 2011 at 12:06am
How laughable and a total waste of taxpayer money. My money is on the fraud in the WH leaking to his master soros that S&P would be cutting the nation’s rating on a Friday night. Thus, some billionaire made a killing off the market sell-off Thursday and Friday leading up to the announcement. I pray this is the downfall of this admin and soros, who is a criminal that has publicly boasted his intention of destroying the US$ and its economy for a one world gov’t. Obviously, our leaders in congress have not awakened to the fact this country is under siege! It’s either they are oblivious to this fact, or they are aiding this destruction of our Constitution.

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- Snowleopard {gallery of cat folks}
  Posted on August 18, 2011 at 12:14am
  This is just one more fine example of Political Intimidation by the administration.
  
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- Ron_WA
  Posted on August 18, 2011 at 1:47am
  This isn’t political intimidation; this old school organized crime – CHICAGO STYLE!
  
  Report this comment
- starman70
  Posted on August 18, 2011 at 8:33am
  @ RON_WA: You obviously have been watching the gangster movies where a businessman is invited to join a “Protection Society”. If he doesn’t join, his business will be trashed or burned out and he may be “Persuaded” to join the Society by several beefy “Protection Specialists”. Well, this is what the American voters get for electing Chicago politicians to national office.
  
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lonewolf57
Posted on August 18, 2011 at 12:03am
Georges Soros should be on the FBI’s most wanted list.

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- kalli
  Posted on August 18, 2011 at 12:23am
  He should be on the terrorist list, but this admin thinks the lone wolf military veterans and the tea party members are the terrorists!
  
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lonewolf57
Posted on August 18, 2011 at 12:01am
‘The newspaper says the investigation began BEFORE Standard & Poor‘s cut the United States’ AAA credit rating this month.’

Yeah,right.And the new USA’s taxpayers bus is’nt black either.

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- Rogue
  Posted on August 18, 2011 at 12:16am
  Careful, you said black. Ed Shultz may be trolling for comments he can use out of context.
  
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- BUDDY LITTLE
  Posted on August 18, 2011 at 1:55am
  YOU say the bus was non-white?
  
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tom
Posted on August 18, 2011 at 12:00am
doj is trying to distract america from their criminal gun selling!

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Ron_WA
Posted on August 18, 2011 at 12:00am
The story states the DoJ investigation began before the S&P downgrade which is possible because back in April 2011 S&P warned the Obama Administration that if they did not make some changes that a downgrade was possible.

The 1st warning was followed by increasing more formal, negative & stern warnings every 6 weeks or so.

I’ve no doubt Obama & Holder had the DoJ open an investigation to try to intimidate & if necessary punish the S&P if they actually downgraded the US.

I read the S&P report cover to cover & their explanation on why they downgraded was solid & rational.

For that the Great & Powerful OZ-bama shall punish them using the cover of govt extortion to carry it out!

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- beekeeper
  Posted on August 18, 2011 at 6:44am
  Golly, I heard the downgrade hinged on a $2 Trillion dollar math error – that’s what POTUS, Reid, Pelosi, Geithner, Lews, et al told us, repeatedly, after the downgrade happened. Are you saying they were merely trying to shift responsibility elsewhere?
  
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NuffSaid
Posted on August 17, 2011 at 11:58pm
Typical welfare minded, never had to earn anything mentality. It’s like watching a mobbing of a convenience store in Chicago. Typical sniveling response to consequences: “SP& is a racist organization. We’re not in debt. We deserve what we have and a lot more.”

Is there any way to outlaw these liberal idiots. Isn’t their something that could be done to identify them before birth and inject them with human genes?

Take you medicine like a man Barry.

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- afishfarted
  Posted on August 18, 2011 at 12:03am
  black booted thugery. Plain and simple
  
  Report this comment
- HorseCrazy
  Posted on August 18, 2011 at 12:04am
  anything to trash s&p and deflect the real issue AMERICA IS BROKE and barry o decided to fast track our destruction. sure the s&p blew it as well as moodys with the credit default swaps but hey I can think of 1000 different reasons not to do this and 1 reason why they would attack s&p using our tax dollars. the coming 2012 election and typical chicago style union style tatics against anyone who dissents
  
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megansmom
Posted on August 17, 2011 at 11:58pm
Really? Your surprised?
This corrupt regime goes after and tries to destroy any one who calls them out.

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- HKS
  Posted on August 18, 2011 at 12:05am
  Now who whould have thought. I suspect the IRS will be calling as well.
  
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- Rogue
  Posted on August 18, 2011 at 12:15am
  Chicagoland politics in DC continues to amaze me. You’d think we would have all seen this coming.
  
  Report this comment
LinkedIn G
Posted on August 17, 2011 at 11:49pm
What kind of administration is this ? Using the DOJ for a personal vendetta ? And…looking the other way when real crimes were committed…( Voter Intimidation )

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- thepatriotdave
  Posted on August 17, 2011 at 11:52pm
  Agreed. This is the dumbest idea since I heard that a Marxist was running for President.
  Eric Holder has already proven to me what his game is all about. IT HAS NOTHING TO DO WITH JUSTICE.
  
  http://www.AllenWestforPresident.us
  
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- Ron_WA
  Posted on August 18, 2011 at 12:09am
  It’s simple extortion under the cover of a “government investigation”.
  
  The pressure & punishments will become increasingly vindictive until S&P restores the AAA rating.
  
  It also serves as a warning to any other rating agency. Intimidation is a favorite tool of the corrupt.
  
  Report this comment
- starman70
  Posted on August 18, 2011 at 8:39am
  Seems Iremember the Clinton Administration using the IRS to investigate several groups or individuals, WorldNetDaily.com being one of them. Just ask Editor in Chief Joseph Farah. Politicians will use any method available to stiffle dissent.
  
  Report this comment
the58thstate
Posted on August 17, 2011 at 11:47pm
this is so scary because its so blatantly obvious whats going on. these people dont care what they look like. we are in the mitts of a dictatorship before our very eyes. this is the transformation he promised. i hope those who voted for this commie realize what they have done.

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SHASTADIANE1
Posted on August 17, 2011 at 11:45pm
Oh Brother!!! Like they should investigate anyone…who is investigating THEM????

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psst
Posted on August 17, 2011 at 11:40pm
S&P should have used a Billy Club when they analyze our out of controlled spending and downgraded US..
Billy clubs are approved by Holder’s DoJ and Soetero.

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semihardrock
Posted on August 17, 2011 at 11:39pm
SMELLS of Communism tactics to me!! Any takers?

No wonder they ALL respect and LOVE Mao!

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UlyssesP
Posted on August 17, 2011 at 11:32pm
How blatant.Obama sucks…the life out of America.

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Ironmaan
Posted on August 17, 2011 at 11:31pm
Our government is a joke. Soooo predictable.

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Odin64
Posted on August 17, 2011 at 11:30pm
Ha ha sure, when are they going to investigate Eric Holder cuase I’m sure he has made more blunders the S&P have done in the last twenty years

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- Azza
  Posted on August 18, 2011 at 11:37am
  I think that Darrel Issa is at the moment conducting an investigation on the Cowardly Criminal Eric Holder…….just waiting for this committee to pick his ass up by the seat of his crappy pants and trow him out………it’s the Fast and Furious investigation…….its just a matter of time both he and the Presidential Knuckle Head will be polishing shoes on some remote corner in Chicago……..
  
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MODEL82A1
Posted on August 17, 2011 at 11:26pm
I called this hours after the downgrade. S&P has been targeted for destruction.

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- mils
  Posted on August 17, 2011 at 11:29pm
  We need an explanation..a public explanation…from the DOJ on this subject…
  I want to know the WHY??
  Who instituted this action?? I want to hear their explanation.
  
  Report this comment
- SovereignSoul
  Posted on August 17, 2011 at 11:49pm
  A number of lawsuits have been filed against the credit rating bureaus in the past few years because they overrated junk mortgages causing investors to lose money after purchasing AAA rated mortgages which went into default shortly thereafter. These lawsuits have been making their way through the legal system for the past three years.
  I”m sure the conspiracy theory machine is primed and ready to run rampant since the U.S.Bond downgrade. it should lead to some interesting and entertaining comments.
  
  Report this comment
- MODEL82A1
  Posted on August 17, 2011 at 11:52pm
  So, SOVER, we’ll be looking forward to the announcement of investigations into Fitch’s any day now. Let’s all hold our breath while we wait. You start. Go.
  
  Report this comment
- SovereignSoul
  Posted on August 18, 2011 at 9:46pm
  Moody’s and Fitch’s are also under investigation. Don’t get your panties in a bunch.
  
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