In response to:

Messing with the Bull

willis9 Wrote: Feb 09, 2013 11:48 AM
There is no law that says they must remain in business, since they all failed in their theoretical mission, there is no reason for them to exist. They have the option of liquidation. The govt. can take over the rating system de jure, since this makes it clear that they are the de facto, decision makers. Their status as privately owned and operated companies is the only thing that gave them credibility. The govt. can pass any law it wants with our accomplice courts, like ordering debt issuers get govt. agency approval, but those who take fiduciary responsibility seriously will not accept garbage with a triple A rating. This is not a slippery slope of course , it is contraction of a fatal disease.

 

With the announcement this week of its massive $5 billion lawsuit against ratings agency Standard & Poor's, the Federal Government took a bold step to squelch any remaining independence of thought or action in the financial services industry. Given the circumstances and timing of the suit, can there be any doubt that S&P is paying the price for the August 2011 removal of its AAA rating on U.S. Treasury debt? In retaliation for the unpardonable sin of questioning the U.S. Treasury's credit worthiness, the Obama Administration is sending a loud and clear message to Wall Street:...