U.S. Hits S&P with $5 Billion Fraud Lawsuit Over Mortgage Securities Ratings

By | February 5, 2013

  • February 5, 2013 at 1:47 pm
    Whodathunkit says:
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    If the laws doesn’t fit, force it.

  • February 5, 2013 at 2:01 pm
    Baxtor says:
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    If certain credit unions have to rely on these rating by these independent businesses, then the lawmakers who made this law should be sued by their own peers.
    I’m wondering what our government is trying to hide by playing the ol smoke and mirror trick? Look over here people; we are filing a lawsuit against the S&P. No don’t look over there where we are doing something else. Why are they trying to divert our attention and from what?

    • February 5, 2013 at 2:06 pm
      Dave says:
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      You want to know what led to the financial crisis? Look no further than Barney Frank and Chris Dodd. Two boobs who chose not to run for re-election.

      http://www.youtube.com/watch?v=cMnSp4qEXNM&list=FL9lJuRBjktDPY_TeM76IBSw

      • February 5, 2013 at 2:35 pm
        Agent says:
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        Right Dave. Bawny & Dodd were in denial that Fannie & Freddie were in trouble and ignored all the warning signs. Add the asleep at the switch SEC and pretty soon you are going to have big trouble. AIG was cooking their books and meanwhile playing with the sub primes and luring a lot of investors into the scheme. I am still amazed that Best has given them A rating even while they had to be bailed out to the tune of $182 Billion large. What this all comes down to is the downgrade S&P gave the government. Can we say “Revenge”?

  • February 5, 2013 at 2:34 pm
    Roger says:
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    About time someone took the rating agencies to task on this although, I can’t see why only one company seems to have been singled out. Some people couldn’t reconcile the ratings of these products as long ago as 1999 – hence they never invested in them. Whether it was fraud, gross negligence or sheer incompetence is something that this Lawsuit might resolve, however,in many cases, the investors were not entirely without culpability. Products were repackaged and re-sold several times (some of the later activity was offloading risk that the seller probably knew or suspected had become “toxic”, which meant finding less knowledgable buyers).

    • February 5, 2013 at 2:52 pm
      youngin' says:
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      Thanks, Roger, for being more informed than the cable-news parrots who usually jump all over these stories.

  • February 5, 2013 at 2:51 pm
    g3 says:
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    Why on earth would we have a law requiring a Financial Institution to only buy securities rated high by Rating agencies that get paid by their customer’s. This is total Insanity!
    And yes Barney Frank and Chris Dodd are no doubt the lead culprits but we must add in B. H. Obama as US Congressman and then Senator. As I recall he was if not the biggest, for sure in top 3 Rep’s Lobbying HARD to lower lending standards so that even the unemployed could buy a home’s. Obviously the Socialist’s have NO Business in charge of the check book. Not only did they create the Mortgage fiasco but now with their never ending drive to buy votes (not talking about unemployment those folks need help) and import those with no education or work skills using promises of Gov’t program funds for ALL we could very easily find ourselves in worse shape if we do not get some common sense in DC and jet the Politicians that play these games.

  • February 5, 2013 at 3:29 pm
    Scott says:
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    Let’s not forget some additional motivation behind this lawsuit: bill-able attorney hours!!!

    • February 5, 2013 at 4:47 pm
      Agent says:
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      The Justice Dept has a legion of lawyers all at taxpayer expense and S&P also has a bunch of them. You are right, the lawyers really like this stuff since they are playing with someone else’s money.

  • February 5, 2013 at 3:45 pm
    Al Berryman says:
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    I assume that it is just a coincidence that the Federal Government is suing the rating agency that down graded US debt, but lets the other rating companies off!!

  • February 5, 2013 at 3:48 pm
    Norm CT says:
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    The politicians back in the Bill Clinton days decided everyone should be able to buy a home irrespective of their ability or track record to make the mortgage payments and associated INS, maintenance, taxes etc. They thought affordable housing was such a good idea (and vote getter) that the govt gladly guaranteed the loans then decided the banks had to write the paper. Now that all these loans went in the toilet it’s somebody else’s fault. Because the Dems were the ringleaders they couldn’t blame Bush – but there is always business to suck money out of. They keep ignoring the fact that no matter who they go after, it’s the taxpayer who will end up paying the bill one way or the other.

  • February 5, 2013 at 5:18 pm
    DougJ says:
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    This is Our Precious Government trying to intimidate the rating agency that has lowered the rating on US Government debt.

    They intend on shutting us up. The guns will be right after that.

    And it is though the government had nothing to do with the mortgage crisis, they bullied the mortgage companies into lending to anyone who was breathing.

    • February 5, 2013 at 6:04 pm
      Agent says:
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      Let’s not forget the Acorn Mob parading up and down in front of the banks demanding loans they didn’t intend to re-pay. Free loans, free cell phones, housing assistance, free medical care, food stamps because they are entitled.

  • February 5, 2013 at 10:04 pm
    Sargent Major says:
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    Doug J, I believe that Barry Sotoro Obama is ready to get an awakening by his own party on gun control. Even old Dirty Harry Reid will have a tough time giving Barry support on this. Nevada is a big gun state. It seems the Democratic supporters have more guns than the Republicans and the last time they tried this they were broomed from office.The only thing that will pass will be background checks which has majority support. The problem with that is they can’t get them all reviewed. Want to see something ironic? look at this

    http://www.youtube.com/watch?v=5jFsdcQuiuI

    So, unless the government tries to amend Obamacare (it won’t with a Republican Congress) to pull this out, then this will stay in. It seems old Dirty Harry put pork into Barry’s healthcare bill and it backfired on him- Oops!

    • February 6, 2013 at 9:28 am
      Agent says:
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      The President is still on the campaign swing out there traveling around to try to sell his gun ban. I wonder how many miles he will put on AF1 this time. Whatever is passed will be very watered down. Criminals will never register their weapons because they bought them out of a car trunk. How does disarming the citizens improve safety? In my view, it only makes crime worse and the most prominent example is Chicago. That is a war zone and Dead Fish has no clue. He won’t even send the SWAT team out to round up the gangs roaming the streets.

  • February 6, 2013 at 11:44 am
    Some Guy says:
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    If the US Government is going to sue S&P, shouldn’t they also sue Blarney Frank who, back in 2003 said of Fannie Mae and Freddie Mac “These two entities … are not facing any kind of financial crisis,”?

    Also…is this retaliation for S&P’s downgrade of the creditworthiness of the US?

  • February 6, 2013 at 1:46 pm
    youngin' says:
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    Anybody wanna cracker?

  • February 6, 2013 at 10:26 pm
    A. L. BRUMBAUGH says:
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    surprise, surprise! you mean i am going to be held for my actions? i claim the 1st amendment and insanity!@

  • February 6, 2013 at 10:34 pm
    A. L. BRUMBAUGH says:
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    these idiots in the justice department don’t they understand anything about big business? why it is our right, no our duty to screw everyone we can while we protect the very wealthy. that is the principle foundation of America finance, i mean, everyone, and i mean everyone understands that, even the guy who gets screwed right?



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