An executive with Standard & Poor's parent company said in a new legal filing that former Treasury Secretary Timothy Geithner warned him that the credit rating firm would be "looked at very carefully" following its decision in 2011 to downgrade the credit rating of the United States.
The legal document was filed as part of a case the Justice Department brought against S&P in February 2013, alleging the company defrauded investors in the lead-up to the 2008 financial crisis by giving risky mortgage bonds its highest rating. The company has alleged the suit was brought in retaliation for the downgrade -- a claim Justice officials have dismissed.
What's almost as disturbing is the way that since that downgrade, few credit rating agencies have dared to make similar calls. It's like they know there will be a cost from the government to announcing the truth. And the media is deceptively reporting the debt limit fights as if raising the debt limit is necessary in order to protect the credit rating -- when, in fact, raising the debt limit continually is what is threatening the credit rating.
This entry was published Thu Jan 23 01:32:22 CST 2014 by TriggerFinger
and last updated 2014-01-23 01:43:49.0.