S&P Inside Job? ‘Somebody made big bucks on US downgrade’*
13 Aug 2011
With aftershocks of the U.S. credit rating downgrade still reverbrating around the world – Washington has decided to go after those behind the mark down. Rating agency Standard and Poor’s, along with its parent company, are now in the crosshairs of the U.S. Securities and Exchange Commission. They’re being investigated for overestimating U.S. debt by some 2 trillion dollars, amid much more serious allegations of insider trading. News of the downgrade is reported to have leaked to certain market power-players hours before it became official. And, as financial analyst Karl Denninger explains – it’s likely to lead to a much wider crackdown on rating agencies.