Someone Is Going to Investigate the S&P Downgrade. Like Everybody.

Wednesday, August 10, 2011 , , 1 Comments



Tim Geithner may be sticking around but I bet you his explosive diarrhea is destroying his gold-plated toilet seats right about now. It's got to be hard rallying his friends to buy up record-low Treasurys to make it look like we've still got debt worth buying.

Reuters:

Standard & Poor's, whose unprecedented downgrade of U.S. debt triggered a worldwide stocks sell-off, is pushing back against a U.S. government proposal that would require credit raters to disclose "significant errors" in how they calculate their ratings.

S&P, which was accused by the Obama administration of making an error in its calculations leading to Friday's downgrade, raised concern about the proposed new corrections policy and other issues in an 84-page letter to the Securities and Exchange Commission, dated August 8.

The SEC is weighing sweeping new rules designed to improve the quality of ratings after their poor performance in the financial crisis.

The 517-page proposal includes a requirement that ratings agencies post on their websites when a "significant error" is identified in their methodology for a credit rating action.
But under the 5-year-old Credit Rating Agency Reform Act, the SEC could technically start looking into S&P, find some moron there who dumped a bunch of Treasurys ahead of its downgrade of the U.S. credit rating and pull S&P's license to judge the creditworthiness of other entities. The SEC could also come down on S&P if they discovered hedge funds, banks or other third parties were given any sort of heads up before the decision.

Given the SEC's new-found interest in social media and how investor information is disseminated, you can bet they've put down the porn for tonight and are scouring Twitter as we speak.

But wait, that's not all! This clusterfuck wouldn't be complete without a Congressional committee investigation.

MW:

The downgrade has been met by fury from the Obama administration, which said it discovered a $2 trillion error in S&P’s analysis of the budget situation over 10 years, but was unable to stop the agency from going ahead with the downgrade.

The Senate Banking Committee is gathering information and looking into S&P’s downgrade, according to a committee aide. Regulatory observers say the committee will likely bring S&P officials to testify before the panel and seek to have documents disclosed revealing more details about the process leading up to the downgrade.

“They want to establish a clear picture of what happened, the process and what considerations were made and how the final decision was made,” [Consumer Federation of America director Barbara] Roper said.

Uh huh. Is that what they are trying to do? I thought it was just some sort of bitchfight pettiness as a result of our credit rating getting downgraded. Silly JDA.

Jr Deputy Accountant

Some say he’s half man half fish, others say he’s more of a seventy/thirty split. Either way he’s a fishy bastard.

1 comments:

What do you mean -- "gold-plated"? Those are solid gold , made by hand by virgin supermodels... He'll need to take them home with him after wrecking the economy...