SEC reviewing S&P handling on downgrade

This article  relavent that  after few day which S&P downgraded  US  long term debt FROM AAA to AA+, the SEC is going to aduit the donwgrade methodology that S&P used in downgrading. The US Dept of Treasury claim that S&P has 2 trillion dollar mistake in calculation and might violate the regulation. Accroding to the  Wall street journal and Financial time,  the SEC is going has wide-range audit among S&P included insider trade: because the 2 trillion dollar mistake mighe be cause by insider trade, and S&P did be aware of it.

After downgrading,Standard and Poor’s has faced tough criticism from lawmakers, market players and the U.S. many people believe the aduit by SEC is a revenge which the federal groverment want to warm S&P.  It might be true, in 1970s  the S&P is the first member of a group who were authorized of credit rating, and it is one of the largest credit rating agency in the US. Now, S&P downgraded US long term debt, it is like if one raise a dog to keep bad stranger away, the dog bite its master. Federal governemtn obiviouse does not feel so well about this matter. 

 

This entry was posted in Uncategorized. Bookmark the permalink.

94 Responses to SEC reviewing S&P handling on downgrade

  1. Rob McGoldrick says:

    Did a 9th grader write this? Was spell check even used?

Comments are closed.