Skip to content
Socio-Economics History Blog

Socio-Economics History Blog

  • About

Socio-Economics History Blog

Socio-Economics History Blog

S&P Amazingly Says No One Should Believe Its Ratings are Independent and Objective!

July 20, 2013 by mosesman

Fraud

  • S&P amazingly says no one should believe its ratings are independent and objective! 
    by Qz, via http://stratrisks.com/
    Today US rating agency Standard & Poor’s told a court of law that it figured every reasonable investor would know its promise to objectively rate securities was mere “puffery,” like a used-car salesman who tells you the last owner of your car was an old lady who only drove it on Sundays.
    –
    The US government thinks that S&P (a unit of McGraw Hill Financial) should pay $5 billion in penalties for giving safe ratings to risky securities while it had cozy relationships with people creating them. Somebody should have known that all those chopped up sub-prime mortgages did not actually create bonds as safe as Treasurys, and it turned out those somebodies were helping S&P create the models that said they were safe.
    –
    Moving to dismiss the suit in a California federal court, S&P said that reasonable investors would know its assurances of independence were just marketing, and that its ratings should be treated as free speech, not as financial statements. The defense ought to worry anyone who relies on its ratings. But should the government win this case, those investors will likely file claims for damages in civil court alleging that they too were defrauded.
    –
    Beyond that, the whole industry of rating securities depends on the idea that ratings have some analytical value. This defense suggests that securities ratings are more about marketing, and indeed, the market has tended to ignore some recent sovereign downgrades issued by the agencies. The US government is trying to strip ratings from the legal code so that its financial decisions won’t rely on them. But it’s not likely to fundamentally change the market by, for example, selecting the rater that a securities issuer uses randomly from among the accredited options.
    –
    In the meantime—if you’re not already doing so—we suggest you take your AAAs with a grain of salt.
    –
    Update: The Wall Street Journal is reporting that the judge has denied S&P’s request for a dismissal for now and will allow the trial to proceed.

end

Post navigation

Previous Post:

Former President and Commander-In-Chief: America Is No Longer a Democracy!

Next Post:

FedRes Money Printing Causing Higher Everything, Zimmerman Designed to Distract, Obama Care Update!

Pages

  • About

Recent Posts

  • ⚡Oil Price APOCALYPSE and Global RESET When War Starts? w/ DOOMBERG
  • ⚡WHOA! Putins SECRET Iran Plan! The TRAP is Set…
  • Trump’s ‘Iran Building Bomb’ A Lie? IAEA Dismantles Israeli-American ‘Nuclear Threat’ Myth, Says…
  • BREAKING VIDEO: Top Billionaire Backer Of Trump Warns US Strike On Iran Will Trigger Economic Devastation Designed By The Globalists To Derail Trump’s Economic Recovery
  • MAJOR False Flag Beckons to Drag U.S. into Israel-Iran Conflict
  • Israel’s Nuclear Arsenal: The Open Secret Giving It Regional Leverage
  • Trump Approves IRAN ATTACK PLAN, Holds Final Order, Iran May Meet At White House | Timcast IRL
  • HIGH ALERT! Iran Says “Battle Just Begun,” China Moves Ships To Persian Gulf, Trump Ready To Strike
  • BREAKING | Hezbollah Chief Naim Qassem Says Group Will ‘Act As We See Fit’ In Iran-Israel War
  • Israel Hides Damage From Devastating Iranian Missile Attacks
  • Trump Approves Iran Strike Plans. “No Evidence Iran Builds NUKEs.” US Intel.
  • Chinese Cargo Planes Secretly Landing in Iran with Aid? • FRANCE 24 English
  • Not Emad Or Fatah, Iran HIDING Secret Missile To Pound Israel? Experts Reveal Khamenei’s New Weapon
  • Iran’s IRGC Unleashes FIRESTORM On Israeli Military Bases In 15TH Wave Of Missile Fury | Watch
  • Israel Is a Pawn in the Globalists’ Game to Control China, Russia and the Silk Road. | John Lee.
  • U.S. Trading Partners Reject Dollars For Payment As Countries Cancel Treasuries For Gold
  • Pentagon Official Axed Over ‘Israel Death Cult’ Post; GoP, Democrats Urge U.S. Not To Join Iran War
  • Pepe Escobar: Trump and the Cult of Death.
  • Jeffrey Sachs: Trump’s Peace Talk Was a Lie – U.S Plans Nuclear War With Iran After Israel’s Strike! Israel Is an Assassination Machine!
  • Alasdair Macleod: The Credit Bubble has Expanded into Equities, Parallels to 1929
  • Former Top CENTRAL BANKER Warns: Expect Debt DEFLATION Then HYPERINFLATION | William White
  • Col. Douglas Macgregor: Israel in ‘VERY SERIOUS TROUBLE’ in War with Iran
  • Houthis Ready for Iran? Al-Houthi Breathes Fire, Threatens Firestorm After Israel Crosses Red Line
  • Saudi, Turkey Rally 56 Islamic Countries In Support Of Iran Amid Israeli Onslaught | Big Huddle Next
  • COL. Douglas Macgregor : Trump Crazy to Attack Iran!
  • Economic STORM Incoming: Crash Is Nearing as US Unemployment Rises While Growth Stalls
  • Nations Pull Gold from U.S. as War Looms and Debt Spirals
  • 🔴 Are They Planning to SHUT DOWN The Gold Market? | Ed Steer

Archives

  • June 2025
  • May 2025
  • April 2025
  • March 2025
  • February 2025
  • January 2025
  • December 2024
  • November 2024
  • October 2024
  • September 2024
  • August 2024
  • July 2024
  • June 2024
  • May 2024
  • April 2024
  • March 2024
  • February 2024
  • January 2024
  • December 2023
  • November 2023
  • October 2023
  • September 2023
  • August 2023
  • July 2023
  • June 2023
  • May 2023
  • April 2023
  • March 2023
  • February 2023
  • January 2023
  • December 2022
  • November 2022
  • October 2022
  • September 2022
  • August 2022
  • July 2022
  • June 2022
  • May 2022
  • April 2022
  • March 2022
  • February 2022
  • January 2022
  • December 2021
  • November 2021
  • October 2021
  • September 2021
  • August 2021
  • July 2021
  • June 2021
  • May 2021
  • April 2021
  • March 2021
  • February 2021
  • January 2021
  • December 2020
  • November 2020
  • October 2020
  • September 2020
  • August 2020
  • July 2020
  • June 2020
  • May 2020
  • April 2020
  • March 2020
  • February 2020
  • January 2020
  • December 2019
  • November 2019
  • October 2019
  • September 2019
  • August 2019
  • July 2019
  • June 2019
  • May 2019
  • April 2019
  • March 2019
  • February 2019
  • January 2019
  • December 2018
  • November 2018
  • October 2018
  • September 2018
  • August 2018
  • July 2018
  • June 2018
  • May 2018
  • April 2018
  • March 2018
  • February 2018
  • January 2018
  • December 2017
  • November 2017
  • October 2017
  • September 2017
  • August 2017
  • July 2017
  • June 2017
  • May 2017
  • April 2017
  • March 2017
  • February 2017
  • January 2017
  • December 2016
  • November 2016
  • October 2016
  • September 2016
  • August 2016
  • July 2016
  • June 2016
  • May 2016
  • April 2016
  • March 2016
  • February 2016
  • January 2016
  • December 2015
  • November 2015
  • October 2015
  • September 2015
  • August 2015
  • July 2015
  • June 2015
  • May 2015
  • April 2015
  • March 2015
  • February 2015
  • January 2015
  • December 2014
  • November 2014
  • October 2014
  • September 2014
  • August 2014
  • July 2014
  • June 2014
  • May 2014
  • April 2014
  • March 2014
  • February 2014
  • January 2014
  • December 2013
  • November 2013
  • October 2013
  • September 2013
  • August 2013
  • July 2013
  • June 2013
  • May 2013
  • April 2013
  • March 2013
  • February 2013
  • January 2013
  • December 2012
  • November 2012
  • October 2012
  • September 2012
  • August 2012
  • July 2012
  • June 2012
  • May 2012
  • April 2012
  • March 2012
  • February 2012
  • January 2012
  • December 2011
  • October 2011
  • September 2011
  • August 2011
  • July 2011
  • June 2011
  • May 2011

Categories

  • Disaster
  • Economics
  • Endtimes
  • Geo-Politics
  • History
  • Medicine & Health
  • Satire
  • Science & Technology
  • Social Trends
  • Uncategorized

Meta

  • Log in
  • Entries RSS
  • Comments RSS
  • WordPress.org
July 2013
M T W T F S S
« Jun   Aug »
1234567
891011121314
15161718192021
22232425262728
293031  
© 2025 Socio-Economics History Blog | WordPress Theme by Superbthemes