Wednesday, August 17, 2011

Politics/Economy: DOJ Investigating S&P Over Mortgage Ratings

Well, well...something about this time.  CNBC has confirmed that the Department of Justice is investigating Standard and Poor over its ratings of the mortgaged backed securities that caused the 2008 financial meltdown.

Outside of the facts, which many politicians will ignore for their own political gains, some will perceive the timing of this investigation sort of a payback for S&P's downgrade of the United States's sovereign debt.

However, that is not the case.  The investigation began long before the downgrade of US bonds.  Earlier, just after the White House agreed to a debt ceiling deal with the GOP and was passed and signed into law by the President, S&P downgraded the United States's crediting rating from AAA to AA+ with a possible downgrade months down the line.

More at Greenjava.


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