Tuesday, February 05, 2013

Finally, the ratings agencies may have a problem

Surprise, surprise!  DOJ actually filed charges against a credit-rating agency, S&P.  True, it's only for civil, not criminal, fraud, but it may be a start.  And it is expected that some states will be joining the suit.  S&P is also being investigated by the SEC.

Interestingly, the government is pressing the firm to plead guilty to at least one count of fraud.  This is very different from the government's willingness to allow fraudsters to neither admit nor deny guilt.  Who knows maybe they'll even try to put someone in jail?

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