Chicago is synonymous with rough and corrupt politics. In many ways, Chicago can be called a “liberty free zone.” The political cesspool we call Chicago is where Barack Obama got his start and he certainly believes in doing things the Chicago way.
S&P, the ratings agency is now learning this the hard way.
From Fox News:
The Justice Department is investigating whether the Standard & Poor's credit ratings agency improperly rated dozens of mortgage securities in the years leading up to the financial crisis, The New York Times reported Wednesday.
The investigation began before Standard & Poor's cut the United States' AAA credit rating this month, but it's likely to add to the political firestorm created by the downgrade, the newspaper said. Some government officials have since questioned the agency's secretive process, its credibility and the competence of its analysts, claiming to have found an error in its debt calculations.
The Times cites two people interviewed by the government and another briefed on such interviews as its sources. According to people with knowledge of the interviews, the Justice Department has been asking about instances in which the company's analysts wanted to award lower ratings on mortgage bonds but may have been overruled by other S&P business managers.
If the government finds enough evidence to support a case, it could undercut S&P's longstanding claim that its analysts act independently from business concerns. The newspaper said it was unclear whether the Justice Department investigation involves the other two major ratings agencies, Moody's and Fitch, or only S&P.
The timing of this is very suspicious, coming two weeks after S&P downgraded America’s debt rating. Fitch has left America’s rating at AAA and Moody’s has not yet said. Clearly this “probe” is not only payback to S&P but a message to Moody’s and Fitch. Like the Chicago mobsters killing a pet and leaving it to be found, the Obama regime is telling the debt ratings agencies, cut us and we will drag you into court.
Anytime you have a Federal investigation, it does cause fear and alarm with who ever is targeted. For the executives of S&P, they should be in particular fear. The news reports make it sound like this is only a civil investigation, but one misstep by any of the executives could quickly turn this into a criminal investigation.
Does anyone remember Martha Stewart? In 2004, an investigation was launched against her for trading on inside information. What started as a civil investigation quickly turned criminal when she was charged with obstruction of justice, obstruction of an agency proceeding and making false statements.
A civil case can quickly turn criminal with a motivated Department of Justice and even innocent missteps.
The real threat is not just the payback directed at Standard and Poor’s. The threat is to the American system. One of the reasons our society functions is the belief in the fairness of our justice system. We believe our justice system works. We believe people are not prosecuted for the beliefs or because someone powerful simply wishes to strike out against them.
The Obama regime has shredded the concept of justice. The best thing S&P can do now is lawyer up, contribute heavily to anyone running against Obama and pray the election goes very well for the cause of freedom.
First of all, there shouldn't even be an SEC. That's just another example of congress abdicating its responsibility.
Second - if the Obama is going after the SEC, he's stepped right into a big pile of poop himself. He was one of the senators who benefited from the loosening of lending terms and also supported further loosening. Read about his dealing with Tony Rezko.
But most of all, it is in typical Obama fashion to go after the messenger rather than fix the problem...
S&P rated the mortgage loans repackaged by government sponsored Enterprises (GSEs) Fannie and Freddie as AAA, because they were guaranteed by a "Triple A organization", the Fed. Government itself.
Had they not done so, I am sure the government would have accused them of sabotage, or other stupid crime.
So for the S&P, it was go along to get along, until the whole thing blew up in the biggest financial melt down in history.
It was the federal government who demanded home loans for those who could not pay them back, and when the house of cards crashed, government tried to blame banks, insurance companies and rating agencies, and the LSM supported the blame game, because thew were in the game up to their eye balls.
Let's hope they "Lawyer Up" and hold it off like the government does on their own questionable things....like "Fast and Furious"....Maybe this is a lesson in disguise...
and Brenda not a bad thought, but I would call it TEAPARTY justice...LOL