Social and political criticisms
From Washington Times | February 5, 2013 by Cheryl K. Chumley
The US government lodged a civil suit in Los Angeles vs. Standard and Poor, a credit rating agency for giving high ratings on risky bonds (mostly mortgage backed securities) S & P denied any wrongdoing claiming the government was unable to predict the collapse of housing market. The government claims the false rating enticed investors to make wrong decisions.
The other allegations is that the agency got sloppy with its ratings.
Was the government action right? Will it not ruin the independence of the rating agency?
How could the agency be so wrong?
Will the credibility of the agency be intact with this lawsuit
What do you think?
