Monday, Feb 25, 2008
Get that AAA rubberstamp out again!
Bloomberg.com: Stocks in U.S. Rally After S&P Affirms AAA Credit Ratings on MBIA, Ambac
Firesale of assets averted, for now. I wonder what it took to swing S&P around?? Was the deal struck with Washington to drop any inquiry into credit rating agencies' role in the sub-prime debacle in exchange for that politically and economically very precious AAA??
Posted by trough2010 @ 07:11 PM (526 views) Add Comment
7 Comments
- If you do not have an admin password leave the password field blank.
- If you would like to request a password allowing you to add comments and blog news articles without needing each one approved manually, send an e-mail to the webmaster.
- Your email address is required so we can verify that the comment is genuine. It will not be posted anywhere on the site, will be stored confidentially by us and never given out to any third party.
- Please note that any viewpoints published here as comments are user's views and not the views of HousePriceCrash.co.uk.
- Please adhere to the Guidelines
1. deepak said...
I really don't understand this. The DOW is up around 170.Yes they still have their AAA somehow.
But if the banks don't have the money what will these insurers insure??
With more multibillion dollar losses to follow where is the money to insure the asset back securities.
2. whiteknight said...
Ah yes.
I over-thought that one. no need for a diagram. They are just simply AAA quality. No rocket scientists required.
I assume there is not the necessity for various splitting solutions now? Or is this separate to that?
3. drewster said...
It's easy for S&P to say they have a triple-A rating. S&P don't stand to lose billions when the bonds default. If I were a bond-holder, I'd take a long hard look at who is pulling S&P's puppet-strings.
4. Tipping Point said...
S&P is wise enough not to bite the hand that feeds them.
If the banks are credit addicted junkies, S&P is surely the dog on string!
5. bystander said...
Well said Drewster - anyone who saw that documentary on Banks and debt last week will know that S&P are paid by the companies who rely on the bonds staying AAA, 'fraudulent' conflict interests and 'insider dealing'????? - I wouldn't like to say.
6. guiriduro said...
So, loads of pundits talking about the market needing to take a reality check on risk pricing, and it starting to happen, and yet the authorities themselves are trying to maintain what is unmistakeably a charade of the ratings agencies bond ratings? Madness, totally unreal, and (necessarily therefore) bound to failure.
7. happyrenterz said...
Well this is not a complete white wash. I suspect there was some behind the scenes negotiating here because Bloomberg reports MBIA Will Halt Asset-Backed Business, Split Units