US Inquiry Eyes S&P Ratings of Mortgages
The Justice Department is investigating whether the nation’s largest credit ratings agency, Standard & Poor’s, improperly rated dozens of mortgage securities in the years leading up to the financial crisis, according to two people interviewed by the government and another briefed on such interviews.
The investigation began before Standard & Poor’s cut the United States’ AAA credit rating this month, but it is likely to add fuel to the political firestorm that has surrounded that action. Lawmakers and some administration officials have since questioned the agency’s secretive process, its credibility and the competence of its analysts, claiming to have found an error in its debt calculations.
http://www.cnbc.com/id/44184348
Thursday, August 18, 2011
Monday, August 08, 2011
US downgrade 'sounds alarm bell': China media
US downgrade 'sounds alarm bell': China media
Standard & Poor's US debt downgrade was a wake-up call for the world, a commentary in a top Chinese state newspaper said, adding that Asian exporters faced special risks.
Citing economist Sun Lijian, the People's Daily on Sunday said Standard & Poor's Friday cut to the US' credit rating from the top notch triple-A to AA+ had "sounded the alarm bell for the dollar-denominated global monetary system".
The comments carried in the Communist Party mouthpiece follow a stinging attack launched by the official Xinhua news agency on Saturday, which said Beijing had "every right" to demand Washington safeguard Chinese dollar assets.
http://news.yahoo.com/china-hits-us-debt-addiction-downgrade-115303087.html
Standard & Poor's US debt downgrade was a wake-up call for the world, a commentary in a top Chinese state newspaper said, adding that Asian exporters faced special risks.
Citing economist Sun Lijian, the People's Daily on Sunday said Standard & Poor's Friday cut to the US' credit rating from the top notch triple-A to AA+ had "sounded the alarm bell for the dollar-denominated global monetary system".
The comments carried in the Communist Party mouthpiece follow a stinging attack launched by the official Xinhua news agency on Saturday, which said Beijing had "every right" to demand Washington safeguard Chinese dollar assets.
http://news.yahoo.com/china-hits-us-debt-addiction-downgrade-115303087.html
Muni Market Prepares for Lost AAA Ratings
Muni Market Prepares for Lost AAA Ratings
By Michelle Kaske - Aug 7, 2011 1:40 PM ET
The $2.9 trillion municipal bond market is preparing for “hundreds and hundreds” of downgrades after Standard & Poor’s lowered the U.S. one level to AA+, the first-ever reduction for the country.
S&P is likely to cut its ratings on municipal debt secured by the federal government, such as pre-refunded bonds, tax- exempts backed by U.S. agencies, and credits that are most dependent on federal spending, Peter DeGroot, head of municipal research at JPMorgan Chase & Co. (JPM), wrote in an Aug. 5 report distributed after the federal downgrade. The New York-based ratings company said it would release a statement on state and local issuers today.
http://www.bloomberg.com/news/2011-08-07/muni-market-prepares-for-loss-of-aaa-ratings-as-s-p-downgrades-u-s-credit.html
By Michelle Kaske - Aug 7, 2011 1:40 PM ET
The $2.9 trillion municipal bond market is preparing for “hundreds and hundreds” of downgrades after Standard & Poor’s lowered the U.S. one level to AA+, the first-ever reduction for the country.
S&P is likely to cut its ratings on municipal debt secured by the federal government, such as pre-refunded bonds, tax- exempts backed by U.S. agencies, and credits that are most dependent on federal spending, Peter DeGroot, head of municipal research at JPMorgan Chase & Co. (JPM), wrote in an Aug. 5 report distributed after the federal downgrade. The New York-based ratings company said it would release a statement on state and local issuers today.
http://www.bloomberg.com/news/2011-08-07/muni-market-prepares-for-loss-of-aaa-ratings-as-s-p-downgrades-u-s-credit.html
Sunday, August 07, 2011
S&P executive: 1 in 3 chance of future downgrade
S&P executive: 1 in 3 chance of future downgrade
WASHINGTON (AP) -- A Standard & Poor's official says there is a 1 in 3 chance that the U.S. credit rating could be downgraded another notch if conditions erode over the next six to 24 months.
The credit rating agency's managing director, John Chambers, tells ABC's "This Week" that if the fiscal position of the U.S. deteriorates further, or if political gridlock tightens even more, a further downgrade is possible.
http://hosted.ap.org/dynamic/stories/U/US_US_DEBT_RATING_CHAMBERS?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2011-08-07-11-03-40
WASHINGTON (AP) -- A Standard & Poor's official says there is a 1 in 3 chance that the U.S. credit rating could be downgraded another notch if conditions erode over the next six to 24 months.
The credit rating agency's managing director, John Chambers, tells ABC's "This Week" that if the fiscal position of the U.S. deteriorates further, or if political gridlock tightens even more, a further downgrade is possible.
http://hosted.ap.org/dynamic/stories/U/US_US_DEBT_RATING_CHAMBERS?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2011-08-07-11-03-40
Geithner Tells Obama He’ll Remain at Treasury
Geithner Tells Obama He’ll Remain at Treasury
By Ian Katz - Aug 7, 2011 5:48 PM ET
Treasury Secretary Timothy F. Geithner, a central figure in the U.S. government’s bailouts of Wall Street banks and efforts to raise the debt limit, told President Barack Obama that he intends to remain in his job.
Geithner, 49, will stay on at least through the 2012 election, according to an administration official who was not authorized to comment publicly.
Geithner, the last remaining member of Obama’s original economic team, made his announcement after months of speculation over his future. He told White House officials this year that he was considering leaving once a deal to raise the nation’s borrowing limit deal was reached. Obama signed an increase in the limit on Aug. 2.
http://www.bloomberg.com/news/2011-08-07/geithner-tells-obama-he-plans-to-stay-in-his-job-as-treasury-secretary.html
By Ian Katz - Aug 7, 2011 5:48 PM ET
Treasury Secretary Timothy F. Geithner, a central figure in the U.S. government’s bailouts of Wall Street banks and efforts to raise the debt limit, told President Barack Obama that he intends to remain in his job.
Geithner, 49, will stay on at least through the 2012 election, according to an administration official who was not authorized to comment publicly.
Geithner, the last remaining member of Obama’s original economic team, made his announcement after months of speculation over his future. He told White House officials this year that he was considering leaving once a deal to raise the nation’s borrowing limit deal was reached. Obama signed an increase in the limit on Aug. 2.
http://www.bloomberg.com/news/2011-08-07/geithner-tells-obama-he-plans-to-stay-in-his-job-as-treasury-secretary.html
Friday, August 05, 2011
World Market Rout Is a Loud No-Confidence Vote in Global Leadership
World Market Rout Is a Loud No-Confidence Vote in Global Leadership
Global markets have issued a vote of no confidence in the management of the world’s two largest economies, the U.S. and the euro area. To regain credibility, leaders on both sides of the Atlantic need to recognize the magnitude of the crisis they face.
The outlook reflected by the market rout is not encouraging, coming as it does after European and U.S. officials thought they were doing enough to fix their similar -- and overlapping -- fiscal problems. The U.S. is growing at a rate too slow to withstand a serious shock, and that shock could easily come from Europe’s resurgent financial crisis. So far, politicians’ efforts have been far too timid to convince the world that they have the situation under control.
http://www.bloomberg.com/news/2011-08-05/world-market-rout-is-a-loud-no-confidence-vote-in-leaders-view.html
Global markets have issued a vote of no confidence in the management of the world’s two largest economies, the U.S. and the euro area. To regain credibility, leaders on both sides of the Atlantic need to recognize the magnitude of the crisis they face.
The outlook reflected by the market rout is not encouraging, coming as it does after European and U.S. officials thought they were doing enough to fix their similar -- and overlapping -- fiscal problems. The U.S. is growing at a rate too slow to withstand a serious shock, and that shock could easily come from Europe’s resurgent financial crisis. So far, politicians’ efforts have been far too timid to convince the world that they have the situation under control.
http://www.bloomberg.com/news/2011-08-05/world-market-rout-is-a-loud-no-confidence-vote-in-leaders-view.html
Dow average plunges 513, worst drop since 2008
Dow average plunges 513, worst drop since 2008
NEW YORK -- The stock market is finishing its worst day since the financial crisis.
The Dow Jones industrial average plunged more than 500 points Thursday. Investors are concerned that the U.S. economy will enter another recession and that Europe's debt problems are not closed to being solved.
Major stock indexes fell more than 4 percent.
EU Struggles to Tame Crisis Amid Contagion
EU Struggles to Tame Crisis Amid Contagion
By James G. Neuger - Aug 5, 2011 4:11 AM ET
European leaders hunted for solutions to the rampaging debt crisis after the resumption of the European Central Bank’s bond-buying program failed to prop up securities in Italy and Spain.
As global stock markets sank for an eighth day, the European Commission called for another reinforcement of the European Financial Stability Facility, the 440 billion-euro ($623 billion) rescue fund for distressed euro-area states.
“To be effective, the EFSF needs to be credible and respected by the markets,” European Union Economic and Monetary Commissioner Olli Rehn said on BBC Radio 4’s Today program.
Europe’s fractious government leaders were back in the spotlight after a divided ECB restarted its bond-purchase program yesterday following a four-month hiatus. The central bank refused to extend the purchases to Italy and Spain, the two countries at the center of the current turmoil.
http://www.bloomberg.com/news/2011-08-05/europe-struggles-to-tame-crisis-as-ecb-bond-buying-fails-to-halt-contagion.html
By James G. Neuger - Aug 5, 2011 4:11 AM ET
European leaders hunted for solutions to the rampaging debt crisis after the resumption of the European Central Bank’s bond-buying program failed to prop up securities in Italy and Spain.
As global stock markets sank for an eighth day, the European Commission called for another reinforcement of the European Financial Stability Facility, the 440 billion-euro ($623 billion) rescue fund for distressed euro-area states.
“To be effective, the EFSF needs to be credible and respected by the markets,” European Union Economic and Monetary Commissioner Olli Rehn said on BBC Radio 4’s Today program.
Europe’s fractious government leaders were back in the spotlight after a divided ECB restarted its bond-purchase program yesterday following a four-month hiatus. The central bank refused to extend the purchases to Italy and Spain, the two countries at the center of the current turmoil.
http://www.bloomberg.com/news/2011-08-05/europe-struggles-to-tame-crisis-as-ecb-bond-buying-fails-to-halt-contagion.html
Wednesday, August 03, 2011
Moody’s Affirms U.S. Rating, Warns of Downgrades
Moody’s Affirms U.S. Rating, Warns of Downgrades
By John Detrixhe - Aug 2, 2011 10:30 PM ET
Moody’s Investors Service and Fitch Ratings affirmed their AAA credit ratings for the U.S. while warning that downgrades were possible if lawmakers fail to enact debt reduction measures and the economy weakens.
The outlook for the U.S. grade is now negative, Moody’s said in a statement yesterday after President Barack Obama signed into law a plan to lift the nation’s borrowing limit and cut spending following months of wrangling between Democratic leaders and Republican lawmakers.
http://www.bloomberg.com/news/2011-08-02/u-s-aaa-rating-faces-moody-s-downgrade-on-debt-economic-slowdown-concern.html
By John Detrixhe - Aug 2, 2011 10:30 PM ET
Moody’s Investors Service and Fitch Ratings affirmed their AAA credit ratings for the U.S. while warning that downgrades were possible if lawmakers fail to enact debt reduction measures and the economy weakens.
The outlook for the U.S. grade is now negative, Moody’s said in a statement yesterday after President Barack Obama signed into law a plan to lift the nation’s borrowing limit and cut spending following months of wrangling between Democratic leaders and Republican lawmakers.
http://www.bloomberg.com/news/2011-08-02/u-s-aaa-rating-faces-moody-s-downgrade-on-debt-economic-slowdown-concern.html
Tuesday, August 02, 2011
US debt deal agreed but may not save AAA credit rating
US debt deal agreed but may not save AAA credit rating
Markets experience volatile trading after news of a deal yet to be approved by Congress
America has moved away from the brink of a catastrophic default after a deal was reached overnight to raise its debt ceiling.
Stock markets around the world briefly rallied on Monday, in relief that the world's largest economy would probably avoid running out of cash this week. But the agreement, which includes around $2.5tn (£1.5tn) of spending cuts over the next decade, has been criticised on both sides of the political divide, and will probably not save America's triple-A credit rating..
http://www.guardian.co.uk/world/2011/aug/01/debt-deal-agreed-concern-congress
Markets experience volatile trading after news of a deal yet to be approved by Congress
America has moved away from the brink of a catastrophic default after a deal was reached overnight to raise its debt ceiling.
Stock markets around the world briefly rallied on Monday, in relief that the world's largest economy would probably avoid running out of cash this week. But the agreement, which includes around $2.5tn (£1.5tn) of spending cuts over the next decade, has been criticised on both sides of the political divide, and will probably not save America's triple-A credit rating..
http://www.guardian.co.uk/world/2011/aug/01/debt-deal-agreed-concern-congress
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