Tag Archives: investors service

It’s Too Easy To Investigate The Ratings Agencies

The ratings agencies like S&P only give their opinions on what securities are worth. They have a first-amendment right to their opinions. What makes their opinions dangerous are U.S. government regulations that force bond securitization to go through one of … Continue reading

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Payback! Justice Department Probes S&P After Downgrade

Between 2002-2007, there $3.2 trillion worth of mortgage loans to people with bad credit and no documented income. Who did most of this rating? S&P and rival Moody’s Investors Service. Three years ago, Bloomberg News quoted sources as saying S&P … Continue reading

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U.S. Justice Department Goes After Ratings Agency S&P

It sure looks like payback for S&P’s downgrade rating on U.S. debt. Justice is looking at S&P’s ratings from 2006 and 2007 on various mortgage securities. Did S&P expect to make more money by giving positive ratings on these securities, … Continue reading

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Bank Of America’s Mortgage Servicing Downgraded

The SEC requires that one of three private credit rating agencies give a grade to all new bond offerings and the like. So, yes, this is a private business, but it is also a government mandated cartel. Bloomberg reports: Bank … Continue reading

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New Regulations To Promote More Accurate Lending Risk

Credit rating agencies were spectacularly wrong in the past few years when they tried to assess the worth of mortgage-backed securities. When thousands of home owners can no longer afford to send in their monthly mortgage payments, all the fancy … Continue reading

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Raising Mortgage Rates In Britain

Here’s a report: Halifax has become the latest lender to announce it is repricing its mortgage range. The group said it was cutting the cost of some of its deals, while raising the rates charged on two of its fixed-rate … Continue reading

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Freddie Mac’s Accounting Tricks

From the New York Times: Freddie Mac beat Wall Street’s expectations in the first quarter, but the mortgage finance company didn’t vanquish concerns about its ability to weather the housing bust. Changes in accounting practices helped McLean, Va.-based Freddie Mac … Continue reading

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