Corrupted Credit Ratings: S&P Lawsuit and Evidence

Explore the business, economy, finance and trade aspects of human society.

Moderators: Calilasseia, ADParker

Corrupted Credit Ratings: S&P Lawsuit and Evidence

#1  Postby GT2211 » Jun 18, 2013 7:43 pm

.....In its civil lawsuit against Standard & Poor's, the US Department of Justice accuses the credit-rating agency to have defrauded federally insured financial institutions like Western Federal Corporate Credit Union:

"Standard & Poor’s, knowingly and with the intent to defraud, devised, participated in, and executed a scheme to defraud investors in RMBS [residential mortgage-backed securities] and CDO [collateralised debt obligations] tranches ..." (US Department of Justice 2013).....


....In a sample of more than 6,500 structured debt ratings produced by Standard & Poor’s, Moody's and Fitch, we show that ratings are biased in favour of issuer clients that provide the agencies with more rating business. This result points to a powerful conflict of interest, which goes beyond the occasional disagreement among employees.....


http://www.voxeu.org/article/corrupted- ... d-evidence
gt2211: Making Ratskep Great Again!
User avatar
GT2211
THREAD STARTER
 
Posts: 3089

United States (us)
Print view this post

Ads by Google


Re: Corrupted Credit Ratings: S&P Lawsuit and Evidence

#2  Postby Macdoc » Jun 18, 2013 11:02 pm

When the rating agencies get paid by those they are rating why is anyone surprised.

and on the criminal fraud end

Bank of America’s mortgage servicing unit systematically lied to homeowners, fraudulently denied loan modifications, and paid their staff bonuses for deliberately pushing people into foreclosure: Yes, these allegations were suspected by any homeowner who ever had to deal with the bank to try to get a loan modification – but now they come from six former employees and one contractor, whose sworn statements were added last week to a civil lawsuit filed in federal court in Massachusetts.

“Bank of America’s practice is to string homeowners along with no apparent intention of providing the permanent loan modifications it promises,” said Erika Brown, one of the former employees. The damning evidence would spur a series of criminal investigations of BofA executives, if we still had a rule of law in this country for Wall Street banks.


continues
http://www.salon.com/2013/06/18/bank_of ... ld_to_lie/
Travel photos > https://500px.com/macdoc/galleries
EO Wilson in On Human Nature wrote:
We are not compelled to believe in biological uniformity in order to affirm human freedom and dignity.
User avatar
Macdoc
 
Posts: 17156
Age: 73
Male

Country: Canada/Australia
Australia (au)
Print view this post

Re: Corrupted Credit Ratings: S&P Lawsuit and Evidence

#3  Postby james1v » Jun 18, 2013 11:06 pm

Its about time someone took these self appointed nobodies by the scruff of their necks, and rubbed their noses in the shit they create. :cheers:
"When humans yield up the privilege of thinking, the last shadow of liberty quits the horizon". Thomas Paine.
User avatar
james1v
 
Name: James.
Posts: 8948
Age: 62
Male

Country: UK
United Kingdom (uk)
Print view this post

Re: Corrupted Credit Ratings: S&P Lawsuit and Evidence

#4  Postby Macdoc » Jun 26, 2013 2:19 am

Well we all knew it....now it's on tape....

Published on Tue Jun 25 2013

DUBLIN- Ireland’s deputy prime minister on Tuesday laid in to “arrogant” executives at a failed bank who mocked government efforts to tackle an economic crisis, amid growing public outrage at the latest revelations in tapes of bank executive phone calls.
The revelations were seen as potentially damaging to Ireland’s efforts to obtain concessions from the European Union on the terms of a bank rescue that pushed it to an 85-billion-euro ($111 billion) bailout.
In the tapes published by the Irish Independent newspaper, the collapsed Anglo Irish Bank’s then-head of capital markets John Bowe was asked how it had come up with a figure of 7 billion euros for a rescue, responding that he had “picked it out of my arse.”
The bank eventually cost taxpayers some 30 billion euros during the financial crisis, almost one-fifth of the country’s annual output, and three former executives—not including Bowe—will go on trial next year on fraud charges.

“I mean the degree of arrogance, the degree of hubris, the degree of couldn’t-care-less-about-the-taxpayer, about the Irish people, that seemed to be part and parcel of the culture of that bank,” deputy prime minister Eamon Gilmore said.
In Dublin, the story dominated television and radio news for a second day, with almost all national papers splashing the story on their front pages. “How come nobody’s in jail?” read the lead headline in the Irish Sun.
The Irish Independent released more details including Bowe singing the German national anthem and laughing as he discussed the prospect of German money flowing in after the guarantee on deposits.
“There is a lot of latent anger about this issue,” said Eoin O’Malley, a lecturer in politics at Dublin City University. “Most of us must have known—but now you can hear them commenting and you can hear the tone.”
Many Irish have had their salaries cut by 20 per cent or more in order to meet fiscal deficit targets as part of the loan guarantees for the country’s international bailout.
The unemployment rate has trebled since the crisis to 14 per cent after the bank-and-land speculation property bubble burst. The 2008 blanket guarantee on bank liabilities led to an 85 billion euro IMF/EU bailout and provoked widespread anger in the country of 4.6 million.
“These guys in the banks lose billions and nothing ever happens,” said Noel Newman, a 78-year-old retiree in Dublin. “On the tape they were laughing, joking. The way they said it was disgusting. Unbelievable.”
Bowe and another executive, consumer banking chief Peter Fitzgerald, said they regretted the conversation but denied any wrongdoing or intention to mislead the central bank.
The opposition has called for a full inquiry into the collapse of the financial system and the timing has embarrassed the government in the last week of its six-month EU presidency.
Ireland wants funds from the European Stability Mechanism bailout fund to help reduce its debt burden from bailing out its banks, but any application will be decided on a case-by-case basis and could be complicated by questions over the bailout.
“We’ve had continuing negotiations with the ECB (European Central Bank) and with European Union partners. What has come out of these tapes doesn’t make our job any easier—it makes it more difficult,” Gilmore said at a meeting in Luxembourg.
The bloc’s finance ministers agreed last week that the ESM will be able to help recapitalize banks that ran into trouble in the past—which Ireland views as vital to shore up its finances—but it will not give blanket permission for the funding.
Anglo, which was liquidated earlier this year, brought a premature end to the political career of former Prime Minister Brian Cowen, who was finance minister during the years of reckless lending across Irish banks.

What the people want to know is when justice is going to be done,” Cowen’s successor Enda Kenny, leader of the opposition in 2008, told parliament. Kenny has promised an inquiry once required legislation is passed, which he hopes to do by August.
But many voters remain skeptical that a close-knit elite would do what it takes to bring friends of friends to justice.


http://www.thestar.com/news/world/2013/ ... eland.html
Travel photos > https://500px.com/macdoc/galleries
EO Wilson in On Human Nature wrote:
We are not compelled to believe in biological uniformity in order to affirm human freedom and dignity.
User avatar
Macdoc
 
Posts: 17156
Age: 73
Male

Country: Canada/Australia
Australia (au)
Print view this post

Re: Corrupted Credit Ratings: S&P Lawsuit and Evidence

#5  Postby Galaxian » Jul 01, 2013 10:54 am

One of the best of Gerald Celente. What the banksters really think about us. Pulling bribe demands out of their "arse"

If short of time, go to 4' 20". Watch in high resolution on full screen to appreciate to the full

https://www.youtube.com/watch?v=dkCdYwaxKko :thumbup:
The true seeker looks for the truth wherever it may be and readily accepts it, without shame, without hope for reward and without fear of punishment_Sam Nejad

To know who rules over you find out who you are not allowed to criticize. -Voltaire
User avatar
Galaxian
Banned User
 
Posts: 1307

Print view this post

Re: Corrupted Credit Ratings: S&P Lawsuit and Evidence

#6  Postby GT2211 » Aug 04, 2013 9:49 pm

Since I don't feel a 2nd S&P thread is necessary...

In the name of 'I didn't learn anything from the financial crisis' S&P is lowering their ratings standards to attract more business since the amendment to prevent such things was removed
http://www.cepr.net/index.php/blogs/bea ... -something
gt2211: Making Ratskep Great Again!
User avatar
GT2211
THREAD STARTER
 
Posts: 3089

United States (us)
Print view this post

Re: Corrupted Credit Ratings: S&P Lawsuit and Evidence

#7  Postby james1v » Aug 04, 2013 11:24 pm

GT2211 wrote:Since I don't feel a 2nd S&P thread is necessary...

In the name of 'I didn't learn anything from the financial crisis' S&P is lowering their ratings standards to attract more business since the amendment to prevent such things was removed
http://www.cepr.net/index.php/blogs/bea ... -something



I expected nothing less. These people are corrupt, they have to be, their income depends on their sponsors. They are the new "church". The new "Mafia". Protection money. :think:
"When humans yield up the privilege of thinking, the last shadow of liberty quits the horizon". Thomas Paine.
User avatar
james1v
 
Name: James.
Posts: 8948
Age: 62
Male

Country: UK
United Kingdom (uk)
Print view this post

Ads by Google


Re: Corrupted Credit Ratings: S&P Lawsuit and Evidence

#8  Postby Ihavenofingerprints » Aug 06, 2013 11:36 am

Bookmarking. Thanks for posting.
User avatar
Ihavenofingerprints
 
Posts: 6903
Age: 28
Male

Australia (au)
Print view this post


Return to Economics

Who is online

Users viewing this topic: No registered users and 1 guest