Not that we didn’t expect this from O’s Chitown machine.
Holder Goes After that Agency that Downgraded U.S. Credit Rating
The Justice Department today announced a lawsuit against the credit rating agency “in our ongoing efforts to protect the American people from financial fraud, to hold accountable those who violate our laws and abuse the public trust, and to seek justice for all whose lives were devastated by the recent economic crisis,” in the words of Attorney General Eric Holder.
The government alleges that S&P “engaged in a scheme to defraud investors in financial products known as Residential Mortgage-Backed Securities, or RMBS, and Collateralized Debt Obligations, or CDOs.”
“We allege that, by knowingly issuing inflated credit ratings for CDOs – which misrepresented their creditworthiness and understated their risks – S&P misled investors, including many federally insured financial institutions, causing them to lose billions of dollars,” Holder said at a press conference today. “In addition, we allege that S&P falsely claimed that its ratings were independent, objective, and not influenced by the company’s relationship with the issuers who hired S&P to rate the securities in question – when, in reality, the ratings were affected by significant conflicts of interest, and S&P was driven by its desire to increase its profits and market share to favor the interests of issuers over investors.”
You mean like Obama has been doing for the past four years with the US government’s creditworthiness? Like you do at Senate hearings?
Personally I think they have the US rated too high, they should take us down to the same rating as Greece. Maybe lower.
Holder should go back to what he does best. Gunrunning.