The New York Times is reporting that the Justice Department is investigating Standard and Poor’s role in the melt down of the economy due to the AAA ratings the agency bestowed on sub-prime mortgage backed securities.
Justice wants to know if the rating agency’s analysts wanted to downgrade the mortages only to be overruled by S&P business managers who collected handsome fees for favorable ratings.
The investigation is said to have started before S & P downgraded U.S Treasury Debt. Of course it did. However the news of the investigation coming out now is purely polticial retribution on the part of the Obama administrations Justice Department looking to discredit the agency.
Justice should also investigate Fannie, Freddie and Frank. As in Barney Frank. But it won’t.Posted: August 18th, 2011 | Author: Art Gallagher | Filed under: Economy | Tags: Justice Department, Standard and Poors | 1 Comment »