NY Times: Justice Dept. Now Investigating S&P
- Posted on August 17, 2011 at 11:23pm by
Jonathon M. Seidl
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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 1:06amKILL 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.
.
Report Post ».
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ProbIemSoIver
Posted on August 18, 2011 at 1:09amWho can we get to Investigate the Justice Department ?
Report Post »DarkFire
Posted on August 18, 2011 at 1:50ama 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 Post »Misdirection
Posted on August 18, 2011 at 1:54amYou 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 Post »Misdirection
Posted on August 18, 2011 at 2:01amAlso… 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 Post »politicaljules
Posted on August 18, 2011 at 2:06amWe 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 Post »Misdirection
Posted on August 18, 2011 at 2:08am@PJules
Couldn’t agree more.
Report Post »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 Post »Ronko
Posted on August 18, 2011 at 7:18amWhy am I not surprised by this news.
Report Post »smithclar3nc3
Posted on August 18, 2011 at 7:57amMean 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
Report Post »members that have an agenda other than protecting and enforcing the Constitution
smithclar3nc3
Posted on August 18, 2011 at 8:05ammisdirection,
Report Post »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.
Hobbs57
Posted on August 18, 2011 at 8:07amI 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 Post »GhostOfJefferson
Posted on August 18, 2011 at 8:18amWhile 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 Post »old white guy
Posted on August 18, 2011 at 8:44amsure they started before the rating cut. time to go after doj.
Report Post »Montana Made
Posted on August 18, 2011 at 11:32amVERY 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 Post »Montana Made
Posted on August 18, 2011 at 11:35amSo 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 Post »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 Post »carbonyes
Posted on August 18, 2011 at 2:51pmHow true it is! The narcissist-in-chief got more than his tail feathers ruffled. It’s payback time -Chicago style politics.
Report Post »AvengerK
Posted on August 18, 2011 at 5:29pmTypical Obama administration and liberal reaction..attack the messenger.
Report Post »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.
Mr.ManZ
Posted on August 18, 2011 at 12:50amOh 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 !
Report Post »db321
Posted on August 18, 2011 at 12:58amGet 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 Post »walkwithme1966
Posted on August 18, 2011 at 2:40amHey 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 Post »RepubliCorp
Posted on August 18, 2011 at 2:51amWALKWITHME1966 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 Post »hauschild
Posted on August 18, 2011 at 8:13amWhy 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 Post »powhatan
Posted on August 18, 2011 at 12:46amEric Holder is the biggest crooked weenie up there!
Report Post »powhatan
Posted on August 18, 2011 at 12:44amIt was the frankendoddsorobama desease that made them do it!
Report Post »starman70
Posted on August 18, 2011 at 6:31amROFALOL!!! 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 Post »ezeewhiz
Posted on August 18, 2011 at 12:32amAnybody looking under the two rocks most responsible for housing market debacle, Rockfrank & Rockdodd?
Report Post »AvengerK
Posted on August 18, 2011 at 5:35pmA GOP house and Senate should be able to overturn those rocks..right now they’re part of a democrat stonewall.
Report Post »Dougral Supports Israel
Posted on August 18, 2011 at 12:29amThey 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.
Report Post »Darmok and Jalad at Tanagra
Posted on August 18, 2011 at 12:22amSee, 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”.
Report Post »MastrSSG
Posted on August 18, 2011 at 12:29amWhy dont they investigate Frank, Dodd, Gheitner………..
Report Post »Darmok and Jalad at Tanagra
Posted on August 18, 2011 at 12:35amI heard Barney Frank is already probing those two.
Report Post »tckid17
Posted on August 18, 2011 at 12:14amsmells like intimidation, what do you think?
Report Post »MastrSSG
Posted on August 18, 2011 at 12:27amWhy do you think the rest of them haven‘t down graded the USA’s credit before now?
Report Post »vtxphantom
Posted on August 18, 2011 at 3:32amWe need a RICO investigation of the Obama regime.
Report Post »LadyGOP
Posted on August 18, 2011 at 12:14amUnbelievable
Report Post »kalli
Posted on August 18, 2011 at 12:06amHow 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.
Report Post »Snowleopard {gallery of cat folks}
Posted on August 18, 2011 at 12:14amThis is just one more fine example of Political Intimidation by the administration.
Report Post »Ron_WA
Posted on August 18, 2011 at 1:47amThis isn’t political intimidation; this old school organized crime – CHICAGO STYLE!
Report Post »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.
Report Post »lonewolf57
Posted on August 18, 2011 at 12:03amGeorges Soros should be on the FBI’s most wanted list.
Report Post »kalli
Posted on August 18, 2011 at 12:23amHe should be on the terrorist list, but this admin thinks the lone wolf military veterans and the tea party members are the terrorists!
Report Post »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.
Report Post »Rogue
Posted on August 18, 2011 at 12:16amCareful, you said black. Ed Shultz may be trolling for comments he can use out of context.
Report Post »BUDDY LITTLE
Posted on August 18, 2011 at 1:55amYOU say the bus was non-white?
Report Post »tom
Posted on August 18, 2011 at 12:00amdoj is trying to distract america from their criminal gun selling!
Report Post »Ron_WA
Posted on August 18, 2011 at 12:00amThe 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!
Report Post »beekeeper
Posted on August 18, 2011 at 6:44amGolly, 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?
Report Post »NuffSaid
Posted on August 17, 2011 at 11:58pmTypical 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.
Report Post »afishfarted
Posted on August 18, 2011 at 12:03amblack booted thugery. Plain and simple
Report Post »HorseCrazy
Posted on August 18, 2011 at 12:04amanything 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
Report Post »megansmom
Posted on August 17, 2011 at 11:58pmReally? Your surprised?
Report Post »This corrupt regime goes after and tries to destroy any one who calls them out.
HKS
Posted on August 18, 2011 at 12:05amNow who whould have thought. I suspect the IRS will be calling as well.
Report Post »Rogue
Posted on August 18, 2011 at 12:15amChicagoland politics in DC continues to amaze me. You’d think we would have all seen this coming.
Report Post »LinkedIn G
Posted on August 17, 2011 at 11:49pmWhat kind of administration is this ? Using the DOJ for a personal vendetta ? And…looking the other way when real crimes were committed…( Voter Intimidation )
Report Post »thepatriotdave
Posted on August 17, 2011 at 11:52pmAgreed. 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
Report Post »Ron_WA
Posted on August 18, 2011 at 12:09amIt’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 Post »starman70
Posted on August 18, 2011 at 8:39amSeems 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 Post »the58thstate
Posted on August 17, 2011 at 11:47pmthis 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.
Report Post »SHASTADIANE1
Posted on August 17, 2011 at 11:45pmOh Brother!!! Like they should investigate anyone…who is investigating THEM????
Report Post »psst
Posted on August 17, 2011 at 11:40pmS&P should have used a Billy Club when they analyze our out of controlled spending and downgraded US..
Report Post »Billy clubs are approved by Holder’s DoJ and Soetero.
semihardrock
Posted on August 17, 2011 at 11:39pmSMELLS of Communism tactics to me!! Any takers?
No wonder they ALL respect and LOVE Mao!
Report Post »UlyssesP
Posted on August 17, 2011 at 11:32pmHow blatant.Obama sucks…the life out of America.
Report Post »Ironmaan
Posted on August 17, 2011 at 11:31pmOur government is a joke. Soooo predictable.
Report Post »Odin64
Posted on August 17, 2011 at 11:30pmHa 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
Report Post »Azza
Posted on August 18, 2011 at 11:37amI 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……..
Report Post »MODEL82A1
Posted on August 17, 2011 at 11:26pmI called this hours after the downgrade. S&P has been targeted for destruction.
Report Post »mils
Posted on August 17, 2011 at 11:29pmWe need an explanation..a public explanation…from the DOJ on this subject…
Report Post »I want to know the WHY??
Who instituted this action?? I want to hear their explanation.
SovereignSoul
Posted on August 17, 2011 at 11:49pmA 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.
Report Post »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.
MODEL82A1
Posted on August 17, 2011 at 11:52pmSo, 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 Post »SovereignSoul
Posted on August 18, 2011 at 9:46pmMoody‘s and Fitch’s are also under investigation. Don’t get your panties in a bunch.
Report Post »