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S&P: DOJ Lawsuit Is ‘Retaliation’ For Downgrade

From an unfazed Associated Press:

S&P says US government’s lawsuit is ‘retaliation’

S&P says that US government filed lawsuit as ‘retaliation’ for downgrade

By Sarah Skidmore Sell | September 3, 2013

Standard & Poor’s says the U.S. government sued the rating agency as "retaliation" for its downgrade of the country’s credit rating.

The Department of Justice filed civil charges against the rating agency in February, claiming that S&P refused to warn investors that the housing market was collapsing because it would be bad for business. It also says S&P knowingly inflated ratings of risky mortgage investments that helped trigger an economic crisis. And that S&P gave high marks to the investments because it wanted to earn more business from the banks that issued them.

The government is seeking $5 billion in penalties.

Oh, is that all. These rating companies aren’t made of money. Such a some could put S&P out of business.

S&P, a unit of McGraw Hill Cos., has repeatedly denied the claims. The rating agency said in a court filing Tuesday that its opinions were independent and based on a good-faith assessment of the performance of residential mortgages during a tumultuous time in the market

S&P says that it is being sued in retaliation for a downgrade of the United States’ top-tier credit rating in 2011.

The rating agency downgraded the U.S. government’s long-term credit rating one notch to "AA+" following a standoff in Congress over whether to raise America’s borrowing limit. The agency was concerned that the country’s leaders weren’t addressing the federal debt burden… Previously, the U.S. government had always received a "AAA" rating, reserved for the most credit-worthy borrowers.

S&P said in court documents that it was exercising its right to free speech with the downgrade and that its concerns echoed those of other rating agencies.

"Only S&P Ratings downgraded the United States and only S&P Ratings has been sued by the United States," it said in the court filing…

Who can honestly doubt that S&P is right here? We have seen how Obama rewards his friends and punishes his enemies.

And this is just one of a hundred examples. (A thousand examples, if you want to include the Tea Party groups the IRS targeted.)

S&P wants the lawsuit dismissed with prejudice, meaning that it cannot be brought again.

Standard & Poor’s Ratings Services reaffirmed the country’s "AA+" rating in June and upgraded its outlook to "Stable" from "Negative" on some easing of Washington’s political gridlock, a recovering U.S. economy and stronger government finances…

What a thug administration we have. And to think we laugh at what Putin is doing in Russia.

This article was posted by Steve on Wednesday, September 4th, 2013. Comments are currently closed.

2 Responses to “S&P: DOJ Lawsuit Is ‘Retaliation’ For Downgrade”

  1. GetBackJack says:

    The power of government unchecked.

    Thanks a lot Republican Party. You’re supposed to step up and plug the hole in the dam, instead you are giddily going along.

    May you rot in Hades

    • captstubby says:

      “fiddle while Rome Burns” .
      then move in to pick up the pieces.
      game plan from day one, 5 years ago.
      this is not my Party Of Lincoln.
      my father told me years ago,
      “there are more horses asses then there are horses.”

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