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Realistbear

Standard & Poors Chief "resigns"

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http://www.telegraph.co.uk/money/main.jhtm.../bcnrate131.xml

Head of S&P steps down amid criticism of rating agencies
By Ben "Bernard" Bland
Last Updated: 8:22am BST 31/08/2007
The head of Standard & Poor's (S&P), the world's biggest credit rating agency, has stepped down amid criticism from politicians and investors about the failure of the major rating agencies to flag up the risk of securities backed by sub-prime mortgages.

There will be quite a few more heads to roll as Great Crash 2 moves along. The blame stage is underway. How long before the finger starts pointing to the architect of the miracle of HPI in the UK? Mr. Brown.

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Guest grumpy-old-man
http://www.telegraph.co.uk/money/main.jhtm.../bcnrate131.xml
Head of S&P steps down amid criticism of rating agencies
By Ben "Bernard" Bland
Last Updated: 8:22am BST 31/08/2007
The head of Standard & Poor's (S&P), the world's biggest credit rating agency, has stepped down amid criticism from politicians and investors about the failure of the major rating agencies to flag up the risk of securities backed by sub-prime mortgages.

There will be quite a few more heads to roll as Great Crash 2 moves along. The blame stage is underway. How long before the finger starts pointing to the architect of the miracle of HPI in the UK? Mr. Brown.

this is major news. As you say RB, many more to come shortly.

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...... surprised the agencies are not being investigated .....they have failed in their primary duty for existence.... :o:o:o

Their primary duty, like all financial institutions, is to maximise their income.

They have been paid massive fees by investment banks to give AAA ratings to CDO's, cleverly packaged by our masters of the universe using flawed data. Like for commission-only sub-prime mortgage brokers (in the US and UK), getting your next fee/commission is all that matters - you just make the 'structure/documentation' fit so the whole pack of cards can be built .....

Financial capitalism is an amazingly resourceful system !!!

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Their primary duty, like all financial institutions, is to maximise their income.

They have been paid massive fees by investment banks to give AAA ratings to CDO's, cleverly packaged by our masters of the universe using flawed data. Like for commission-only sub-prime mortgage brokers (in the US and UK), getting your next fee/commission is all that matters - you just make the 'structure/documentation' fit so the whole pack of cards can be built .....

Financial capitalism is an amazingly resourceful system !!!

...yep ....need to get Robert Redford and Paul Newman back for 'The Sting 2'.....the biggest delusion in history.... :lol::lol::lol::P

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Their primary duty, like all financial institutions, is to maximise their income.

They have been paid massive fees by investment banks to give AAA ratings to CDO's, cleverly packaged by our masters of the universe using flawed data. Like for commission-only sub-prime mortgage brokers (in the US and UK), getting your next fee/commission is all that matters - you just make the 'structure/documentation' fit so the whole pack of cards can be built .....

Financial capitalism is an amazingly resourceful system !!!

Very well put...

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This must mean that there is much worse to come if a goat has been sacrificed this early in the game. After all couple of days of market turbulence and a few discount window visits does not a witch-hunt make.

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Financial capitalism is an amazingly resourceful system !!!

As Crass used to say - "they've got big hands."

Or more fully:

"This structures stretches, it'll bend but not break.

Big hands, big hands, big hands, big hands.

This system channels any threat that you make."

Edited by Starcrossed

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This must mean that there is much worse to come if a goat has been sacrificed this early in the game. After all couple of days of market turbulence and a few discount window visits does not a witch-hunt make.

IMO, there is a lot more to come. As we consider the monumental events of the past few days we cannot but great with fear and trembling the enormity of the problems caused by HPI madness over the past decade.

1. The boss of the world's number one credit rating agency "resigns."

2. Ben Bernake writes a letter to Senator Thurman on the liquidity crisis and Bush steps in.

3. The Fed cut the discount rate amid a stock market route.

4. Countless major banks hit liquidity problems such that central banks flood the system with emergency funds.

5. Hedge funds collapse and major brokerage houses are downgraded.

6. Private debt levels exceed all know records and show no sign of slowing.

7. Banks borrow for the BoE at high rates of interest.

8. Foxtons get out of the property business before all this happens.

9. Barclays borrowed 3.2 billion from the BoE.

10. Nationwide go public and warn of house price danger ( http://www.thisismoney.co.uk/mortgages/hou...p;in_page_id=57 )

We will be adding many more in the hours and days ahead. I think it may be time to re-align our standings and consider whether we are bears, uber bears or extreme bears. Surely, no one is a bull/neither now? :blink:

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What does a CDO look like, is it a certificate? ie when it's 're-packaged and sold on' does someone hand them a certificate with a "hey read this, you keen?" angle or is it much more paperless than that? i figure it is hence the mess that's been caused, no-one knows who owes each other what etc etc

sorry, thick as sh*t question i know but hey... i'm as thick as sh*t

cheers

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IMO, there is a lot more to come. As we consider the monumental events of the past few days we cannot but great with fear and trembling the enormity of the problems caused by HPI madness over the past decade.

1. The boss of the world's number one credit rating agency "resigns."

2. Ben Bernake writes a letter to Senator Thurman on the liquidity crisis and Bush steps in.

3. The Fed cut the discount rate amid a stock market route.

4. Countless major banks hit liquidity problems such that central banks flood the system with emergency funds.

5. Hedge funds collapse and major brokerage houses are downgraded.

6. Private debt levels exceed all know records and show no sign of slowing.

7. Banks borrow for the BoE at high rates of interest.

8. Foxtons get out of the property business before all this happens.

9. Barclays borrowed 3.2 billion from the BoE.

10. Nationwide go public and warn of house price danger ( http://www.thisismoney.co.uk/mortgages/hou...p;in_page_id=57 )

We will be adding many more in the hours and days ahead. I think it may be time to re-align our standings and consider whether we are bears, uber bears or extreme bears. Surely, no one is a bull/neither now? :blink:

Nice list. You could add several major institutions, eg HSBC, selling their HQ building and renting it back. This has two advantages for them: 1) reduces exposure to property, and 2) liberates cash while they still can to cover the liabilities they can see coming.

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