Category: Standard & Poor’s

Structured by cows: Part 2, As a cat laps milk

13 March, 2013 (09:00) | Litigation, Rating agencies, Securitization, Standard & Poor's, Subprime, US News |

By:David A. Smith   [Continued from yesterday’s Part 1.]   They’ll take suggestion as a cat laps milk.  – William Shakespeare, The Tempest   Yesterday’s post delved into the juicy details deliberately provided by the Department of Justice in its $5 billion lawsuit against Standard & Poor’s, as reported in the Wall Street Journal (February […]

Structured by cows: Part 1, Fastest animal on earth?

12 March, 2013 (09:00) | Litigation, Rating agencies, Securitization, Standard & Poor's, Subprime, US News |

By:David A. Smith   A CDO could be structured by cows and we would rate it. – Unnamed S&P employee cited in Department of Justice Lawsuit   Too chicken to rate my securities?   People like stories, especially parables, especially parables that reinforce our moral views of the world.  Because of this, we should be […]

It’s about time, five billion bucks’ worth: Part 4, A deal could sink the company

14 February, 2013 (09:00) | Enforcement, Fitch, Litigation, Moody's, Rating agencies, Regulation, Securitization, Standard & Poor's, Subprime, US News |

By:David A. Smith   [Continued from yesterday’s Part 3 and the preceding Part 2 and Part 1.]   By now readers should be in no doubt, based on my initial post on of the Department of Justice suing Standard & Poor’s, reported in the Wall Street Journal (February 5, 2013) and a review of Justice’s initial […]

It’s about time, five billion bucks’ worth: Part 3, Big enough to drive a Mack truck through

13 February, 2013 (09:00) | Enforcement, Fitch, Litigation, Moody's, Rating agencies, Regulation, Securitization, Standard & Poor's, Subprime, US News |

By:David A. Smith   [Continued from yesterday’s Part 2 and the preceding Part 1.]   In the two preceding parts of this post, using principally two articles in the Wall Street Journal (February 5, 2013) and Wall Street Journal (February 6, 2013) (blue font), we established that the Justice Department is extremely serious in going […]

It’s about time, five billion bucks’ worth: Part 2, Three types of fraud

12 February, 2013 (09:00) | Enforcement, Fitch, Litigation, Moody's, Rating agencies, Regulation, Securitization, Standard & Poor's, Subprime, US News |

By:David A. Smith   [Continued from yesterday’s Part 1.]   Yesterday’s post on the spectacle of the Department of Justice suing Standard & Poor’s, reported in the Wall Street Journal (February 5, 2013), led us to the point of examining the Justice Department’s initial brief, helpfully reported in the Wall Street Journal (February 6, 2013) […]