Argument That S&P's Ratings Were 'Puffery' Doesn't Fly

, The National Law Journal

   | 3 Comments

A federal judge in California has said he likely would allow the U.S. Justice Department's lawsuit to go forward against ratings agency Standard & Poor's Financial Services LLC over the integrity of its ratings leading up to the 2008 financial collapse.

This content has been archived. It is available exclusively through our partner LexisNexis®.

To view this content, please continue to LexisAdvance®.

Continue to LexisAdvance®

Not a LexisAdvance® Subscriber? Subscribe Now

Why am I seeing this?

LexisNexis® is now the exclusive third party online distributor of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® customers will be able to access and use ALM's content by subscribing to the LexisNexis® services via LexisAdvance®. This includes content from the National Law Journal®, The American Lawyer®, Law Technology News®, The New York Law Journal® and Corporate Counsel®, as well as ALM's other newspapers, directories, legal treatises, published and unpublished court opinions, and other sources of legal information.

ALM's content plays a significant role in your work and research, and now through this alliance LexisNexis® will bring you access to an even more comprehensive collection of legal content.

For questions call 1-877-256-2472 or contact us at customercare@alm.com

What's being said

  • Pancho

    S&P, if memory serves, was issuing stellar ratings for speculative for-profit prison tax exempt bonds issued by municipalities around the U.S. that had very marginal chances for success. The economic feasibility assessments of these prospects were clearly garbage and the promoters had a long history of failed projects.

    This was clear to me in 2007 and I'm hardly a financial expert. I figured if they and Moody's were issuing this trash, it probably permeated their entire ratings system.

    I think history has proved me right.

  • Darren McKinney

    Have tax-exempt prison bonds collapsed, Pancho? Either they have or they haven't. Don't leave us in suspense. Meanwhile, the only reason Putin's, er, I mean Holder's DOJ is going after S&P is because S&P was the only ratings agency with enough integrity to downgrade Uncle Sam's ballooning debt a couple of summer's ago. Thus this costly litigation, for which yet more debt is ironically being heaped on unborn taxpayers of the future, is nothing more than a rather transparent and petulant political vendetta, the likes of which Putin's Kremlin has now become infamous.

  • Pancho

    S&P, if memory serves, was issuing stellar ratings for speculative for-profit prison tax exempt bonds issued by municipalities around the U.S. that had very marginal chances for success. The economic feasibility assessments of these prospects were clearly garbage and the promoters had a long history of failed projects.

    This was clear to me in 2007 and I'm hardly a financial expert. I figured if they and Moody's were issuing this trash, it probably permeated their entire ratings system.

    I think history has proved me right.

Comments are not moderated. To report offensive comments, click here.

Preparing comment abuse report for Article #1202610067336

Thank you!

This article's comments will be reviewed.