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  • mswayze Feb 5, 6:55 p.m.

    would have been cheaper to have bailed out the homeowners.
    add in the other 29 not taken care of by dodd-frank that were there with glass-steagall and its going to happen some more...

  • FlagWavingFascistCrank Feb 5, 4:17 p.m.

    D.A.R.N. Network* Clarification Squad:

    It AIN'T S&P's fault! It's the LIBERALS and SOCIALISTS and ACORN's fault! I SEEN it on the INTERNET!

    *Delusional Alternate Reality News Network

  • Barely Feb 5, 3:46 p.m.

    This is nothing more than a plot of vengeance against the S&P for downgrading the US bond status. There's plenty of others to blame that haven't even been talked about by the AG.

  • mep Feb 5, 3:24 p.m.

    NC is chomping sour grapes after losing so much of its employee pensions in the stock market.... but that is what you get when you gamble. Perhaps NC should just visit Las Vegas... the odds are sometimes better.

    The securities being sold were backed by Fan and Fred... the full faith of the US govt and taxpayers... and they were sold as such.... S&P is not to blame.

  • King of Ignorance Feb 5, 2:53 p.m.

    "Academic snob, What fraudulent activity? If the banks didn't loan the money they were fined very heavely, The S&P saw this and then reduced the rating of the Government becuase of all the bad loans. That is what this administration is upset about. The lower rating is on their watch. and they did nothing to stop it.
    babedan"

    The DOJ is after S&P for knowingly giving fraudulently high ratings to mortgage-backed securities--ratings they knew didn't accurately reflect the risk. State pension funds, among others, are not allowed to "junk" securities. Based on the fraudulent ratings, they duped into buying these securities. When the securities blew up (as the fraudsters knew they would) they lost a lot of money.

    Banks make risky loans all the time. As long as they appropriately disclose the risk, there's no fraud. These guys hid the risks.

    Mortgage-backed securities have nothing to do with why S&P reduced the credit rating of US-issued debt. It had to do with debt/GDP ratio.

  • Milkman Feb 5, 2:48 p.m.

    Babedan - The fraudulent activity was giving high marks to real estate bonds that had little or no chance of performing well due to the borrowers ability to repay. Yes, the institutions had to make the bad loans IF they could find someone to underwrite them. The fraud was giving the loans high marks so they could be underwritten. I'm happy that S&P is going to have to face the music on this, but they're no where close to the only ones, and some of the decisions involved aren't just civil actions, they are criminal. And Academicsnob, the Obama mentions in here are because his Justice Department has done very, very little to bring these guys to justice, either criminal or civil.

  • SouthernPackerFan Feb 5, 1:41 p.m.

    So the other 2 credit ratings organizations had the same exact ratings on these financial institutions but ONLY the S&P downgraded the Obama economy. This is political retaliation at its disgusting worst. Everyone should be enraged!!

    Pirate01
    oh ........that's comming!

  • SouthernPackerFan Feb 5, 1:41 p.m.

    so what is so different here from the fed. government (Dodd/Frank) and others who all but forced banks/other mortgage lenders to give loans to people they knew could never pay it back?

    josephlawrence43
    nobody forced anyone to lie, steal and cheat......they own that all on their own!

  • OpenM1nd Feb 5, 1:39 p.m.

    The government is probably also seeking revenge for having its own S&P rating downgraded the last time the debt ceiling got raised. While some of the blame might be S&P's, there are more culprits lurking elsewhere who should also be addressed. Partial scapegoating here.

  • Bill Brasky Feb 5, 1:34 p.m.

    "so what is so different here from the fed. government (Dodd/Frank) and others who all but forced banks/other mortgage lenders to give loans to people they knew could never pay it back?"

    Perhaps because no one forced banks to make bad loans..But due to the deregulated market these poor government abused banks made millions in the 1990s and early 2000s selling their bad loans on the stock market as mortgage backed securities with the possible help of the S&P

  • babedan Feb 5, 1:19 p.m.

    Academic snob, What fraudulent activity? If the banks didn't loan the money they were fined very heavely, If they make the loan and the person doesn't pay, they are now being sued. Seems like it was a dang if you do, dang if you don't situtation. The S&P saw this and then reduced the rating of the Government becuase of all the bad loans. That is what this administration is upset about. The lower rating is on their watch. and they did nothing to stop it.

  • Stilllearnin Feb 5, 12:59 p.m.

    Need to know what the criteria was for the S&P ratings. How many of these banks and mortgage lenders were sued, how many went to jail? How many presidential staff members were from some of the same firms on wall street?

  • corgimom06 Feb 5, 12:48 p.m.

    It's about time. This should have been done a few years ago.

  • King of Ignorance Feb 5, 12:44 p.m.

    It's about time. All the Obama comments aside, these guys were knee deep in fraudulent activity. I hope the DOJ goes after the other two big agencies as well. I'd also like to see some criminal charges filed.

  • josephlawrence43 Feb 5, 12:02 p.m.

    so what is so different here from the fed. government (Dodd/Frank) and others who all but forced banks/other mortgage lenders to give loans to people they knew could never pay it back?

  • dontstopnow Feb 5, 11:34 a.m.

    This is absolutely amazing. I am speechless.

  • Pirate01 Feb 5, 11:27 a.m.

    So the other 2 credit ratings organizations had the same exact ratings on these financial institutions but ONLY the S&P downgraded the Obama economy. This is political retaliation at its disgusting worst. Everyone should be enraged!!

  • Milkman Feb 5, 11:26 a.m.

    BofA loaning a candidate $20M whose administration has just sued you is politically spun in an attempt to gain favor.

    Saying that the extent of the real estate bonds incorrect ratings wasn't known in 2009, when it was clearly known in 2008 when TARP was so necessary to save the financial system is politically spun.

    Saying Panetta's interview recently didn't say that information was gained through enhanced interrogation techniques is politically spun. (Like Obama's speech immediately following Benghazi where you could say he blamed a video or he blamed terrorism, not 100% clear what he was saying.)

    I didn't know Bernie had passed, and none of those other guys have been charged, even John Corzine and MF Global got a free pass already, so to say that many more of these culprits will be found guilty is very politically spun.

  • Caveman93 Feb 5, 11:18 a.m.

    Total and complete financial cannibalism...I LOVE IT! The systems eat themselves. Film at 11!

  • tony57 Feb 5, 11:17 a.m.

    The Obama admnstration in all it's glory. There are endless reasons for the financial mess (including the governmental policies that were in place), but DOJ targets the one ratings agency that called the US on it's finacial irresponsibility. It is pure politics of the worse kind.

  • harmstrong4 Feb 5, 11:16 a.m.

    so let me get this straigt....Barry and company take no responsibility for anything bad. yep....thought so.

  • Bill Brasky Feb 5, 11:07 a.m.

    "Oh, and by the way - if you have not learned - it is the same reason for the crash in 1929, hence Glass-Stegall. But Clinton (Democrat) wiped it out, and when he did - I said to my Co-Workers "The economy is going to crash 10-15 years from now." Well, he signed in in 94. So ya can't blame Bush."

    admyank, both parties had their hands all over this. First of all it was 2 Republican Congressmen that cowrote the bill that ended Glass-Stegall. Then it passed a Republican Congress and Senate, then signed into law by Bill Clinton, who years later said it was a major mistake.

    I'm not sure where you got your information from, or who you are repeating but it is very politically spun.

  • gnewsome1 Feb 5, 11:01 a.m.

    If the government had its fiscal house in order, not that it ever will with a bunch of free spenders, the S&P rating would not be an issue. Now the government wastes more taxpayers money on a frivilous lawsuit.

  • babedan Feb 5, 10:53 a.m.

    Bill Clinton pushed the legislation through congress that relaxed the rules on subprime lending forcing banks to lend money on "High Risk" loans or face huge fines. Now that it bit the economy in the rear, Here comes his counterparts who are now suing to try to right their wrong. Same of Democrat, It's not my fault it's always someone elses fault mentality. Next they will be suing Bill Gates because he hasn't hired all those who are unemployeed at 100K per year

  • aspenstreet1717 Feb 5, 10:36 a.m.

    Fannie and Freddie still exist. They should never have existed to begin with. Thanks Washington for another mess you created.

  • Rebelyell55 Feb 5, 10:08 a.m.

    Hate the fact that no one in goverment or corp. are going to jail over this, since they knew this was going on, guess why so many elected officals got rich.

  • M-Man Feb 5, 10:05 a.m.

    can we also have the politicians sued that IGNORED the clear warnings (and denigrated the messengers) ?? Oh I forget, they have the wrong letter of the alphabet behind their name to be held responsible...

  • mep Feb 5, 10:01 a.m.

    Hey... they were backed by the full faith of the US govt and taxpayer money.... how much more secure could they be?

    Seems more like Chicago politics in play here.

  • admyank Feb 5, 9:46 a.m.

    wralsucks - I can't stop saying wralsucks - that's a great screen name!

    You're right - the federal government, under the facist Obama, is suing S&P and no one else in the matter - Not even JP Morgan - for the fall in 2008 and 2009.

    Now, S&P as well as all of the other credit rating agencies changed how your credit score is calculated - but the Feds did not change the law or bring back Glass-Stegall. So we are due to have another crash.

    Oh, and by the way - if you have not learned - it is the same reason for the crash in 1929, hence Glass-Stegall. But Clinton (Democrat) wiped it out, and when he did - I said to my Co-Workers "The economy is going to crash 10-15 years from now." Well, he signed in in 94. So ya can't blame Bush.

  • wralsucks5 Feb 5, 9:30 a.m.

    Sorry folks.. The S&P folks weren't the only credit ratings agency involved.... BUT they are the only rating agency to downgrade the US credit rating... Hmmmmmm

  • Bill Brasky Feb 5, 9:29 a.m.

    "Whatever happened to the suit against BofA that was announced right before they loaned the campaign to re-elect $20M???"

    BOA was sued by the Feds, this was big news.

    "And why wasn't this suit filed in 2009 right after the damage S&P caused was apparent?"

    The damage wasn't apparent in 2009

    "too busy going after Arizona and the CIA for enhanced interrogation techniques that really did work."

    According to Leon Panneta enhanced interrogation never gathered accurate information.

    "And why aren't all the guys responsible in jail beside Bernie Maddoff?"

    Bernie Maddoff died in prison, and many more of these culprits will be found guilty...Any other conspiracies?

  • tomfoolery Feb 5, 9:10 a.m.

    Take their money and throw them in jail! Make an example of them! We... the taxpayers of this country are still paying the price of their greed. Without consequence, what's there to stop them from doing it again?

  • Milkman Feb 5, 8:57 a.m.

    Whatever happened to the suit against BofA that was announced right before they loaned the campaign to re-elect $20M???

    And why wasn't this suit filed in 2009 right after the damage S&P caused was apparent? I guess the Justice Department was too busy going after Arizona and the CIA for enhanced interrogation techniques that really did work.

    And why aren't all the guys responsible in jail beside Bernie Maddoff? Too many friends in the administration I guess.

  • xylem01 Feb 5, 8:54 a.m.

    It's about time! These shysters pulled the wool over everyone giving that warm & fuzzy feeling with in reality it was not.

  • jcd241959 Feb 5, 8:23 a.m.

    I guess if you question dear leader you will pay!

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