Seeking billions from S&P for inflated ratings, US seeks to cast blame for financial crisis

  • Article by: DANIEL WAGNER and CHRISTINA REXRODE , Associated Press
  • Updated: February 5, 2013 - 5:12 PM

WASHINGTON - The Obama administration on Tuesday accused Standard & Poor's of refusing to warn investors that the housing market was collapsing in 2006 because it would be bad for business.

  • 12
  • Comments

  • Results per page:
timandtiaFeb. 5, 13 7:33 AM

Why doesn't the government sue the people who got these "bad loans"? I bet 90.00% of these people did not really qualify for loans or did not know what they were getting into. Otherwise, these people were just plain stupid to think that they qualified for a loan.

turgidFeb. 5, 13 7:45 AM

It's funny how the Wall Street crowd can pretend to be such geniuses about the future, and yet are always dumb struck about what happened in the past.

circleoflifeFeb. 5, 13 7:49 AM

And when is the US government going to be held responsible for their role? Fannie and Freddie come to mind

elmore1Feb. 5, 13 9:26 AM

The US Govt should sue itself. It doesn't take a rocket scientist to determine that the huge loans didn't make sense. The next bubble to burst is college debt, who do we sue for that? The students, the colleges, lenders?

toner_04Feb. 5, 13 9:46 AM

@timandtia - It's not illegal to apply for a loan...they should be looking at the financial institutions who gave the loans. They were only interested in making the loans, collecting the fees, and then selling the loans. As long as home prices kept going up, there was little risk and high profit for origination fees.

mizzlepizzleFeb. 5, 1310:53 AM

This is payback by the Obama administration. Obama and his cohorts are now very mad that S&P lowered the rating of the State of Illinois because they have rising debt they can never dig out of. Sounds kinda like where Obama is taking the Federal Government.

Wally_99Feb. 5, 1312:47 PM

Barney Frank & Co are the main reason for that crisis. It is astonishing that they have gotten off Scot free.

rschildkFeb. 5, 13 1:51 PM

@Wally_99 - You seriously believe that one minor Democratic congressman (in a Republican-controlled House from 1994-2006) had the power to game the ENTIRE financial system of the US, (all the Mortgage lenders, all the Title companies, all the Underwriters, all the real-estate agents, all the Banks, and the US Federal Reserve) so poor Black/Latino/Gay/Muslim (take your pick) people could buy multi-million-dollar homes and no Real American (White/Christian/Straight/Male) every bought a bad mortgage they couldn't afford? Right. BTW - I have several bridges to sell you in the New York area.

naplessellFeb. 5, 13 2:05 PM

Europe should join the lawsuit - they relied on S&P's High A ratings on mortgage backed securities, which were really D's at best.

bgmach3Feb. 5, 13 2:52 PM

Good! Now actually lock some of these "brightest and best" up. Don't just talk about it and don't stop, no matter how far up the wallstreet and or political ladder you have to go.


Comment on this story   |  


Connect with twitterConnect with facebookConnect with Google+Connect with PinterestConnect with PinterestConnect with RssfeedConnect with email newsletters