Ratings agency Standard and Poor's cut France's sovereign credit rating to AA from AA+ on Friday, citing lack of progress in government reforms of the country's economy.
Ratings agency Standard and Poor's (S&P) has claimed the lawsuit filed against it by the US Justice Department was 'retaliation' against its decision to downgrade the US's credit rating.
When Chuck Prince was CEO of Citigroup from 2003 to 2007, he didn’t know about a surge in mortgage risk that his own investment bankers loaded on to its bank’s books.
A $1.6bn collateralized debt obligation issued by Vertical Capital LLC in March 2007 with the same name as a portion of the beach at St. Tropez, France, burned out just 228 days after it was issued.
Oh, the poor suckers at Citigroup and Bank of America, fooled about the stench of their own garbage by those sneaky credit raters at Standard & Poor’s.
A unit of New York Life Insurance Co. issued a $1.5bn collateralized debt obligation named after a Northern sky constellation in April 2007. The deal burst when it defaulted less than a year later.
A Standard & Poor’s analyst in 2004 sent an e-mail to executives at the rating company’s structured- finance group. It had lost a job to Moody’s rating a mortgage- backed security because S&P criteria were more demanding, and something had to be done, the analyst allegedly wrote.
In the government's eye, changing debt rating criteria to meet market demand is fraudulent. But that's only true if you have contempt for your customers.
In May 2007, Standard & Poor’s confirmed its initial AAA ratings on $772m of a collateralized debt obligation known as Octonion I. Within 10 months, the Citigroup deal defaulted, costing investors and the bank almost all their money.
Oh dear - what seemed so funny at the time.........