One of the culprits in the subprime mortgage scandal is FINALLY beginning to be dragged into the light -- the credit ratings agencies. That includes S&P (Standard & Poor's) and others like Moody's and Fitch's.
Breaking news from Reuters as of 7:21 this AM indicates that McGraw-Hill, which owns S&P, has replaced the president of S&P, effective immediately --
The NY Times reported that S&P had cut a British firm's credit rating by a whopping SIX NOTCH DOWNGRADE, that may --
Comforting thought, eh?
Breaking news from Reuters as of 7:21 this AM indicates that McGraw-Hill, which owns S&P, has replaced the president of S&P, effective immediately --
Publisher McGraw-Hill Cos Inc is replacing the president of Standard & Poor's, the company's financial services division, effective immediately, amid questions about the role of credit-rating agencies in the subprime mortgage crisis.An example of possible ratings culpability caught my eye the other day.
The NY Times reported that S&P had cut a British firm's credit rating by a whopping SIX NOTCH DOWNGRADE, that may --
[force the ]London money management firm, Cheyne Capital Management ... to liquidate the assets backing its $10 billion commercial paper program in the latest casualty of the jittery credit market.This downgrade comes, as the Times notes --
Just two weeks [after], on Aug. 15, S.& P. declared those same notes to be the highest investment grade.These same ratings agencies rate municipal bonds such as Plainfield's. With the same level of professionalism, ethics and care.
Comforting thought, eh?
- NY Times: "S.& P. Cuts British Firm’s Debt Rating"
- Reuters (breaking): "McGraw-Hill Replaces President Of Standard & Poor's"
-- Dan Damon
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