As the housing market heated up in the mid-2000s, Wall Street banks
rushed to market high-yielding, mortgage-related securities, each of
which required a rating on their credit quality by one of the three
firms that dominated the market. Above, a sign advertising a new housing
development in... (Ethan Miller / Getty Images)
In May 2004, as the U.S. housing market was heating up, Standard & Poor's Financial Services lost to a rival a huge deal to rate mortgage-backed securities to be issued by a major Japanese bank.
The reason? S&P's credit standards were too high, an employee complained to his boss.
The company then went on to "downplay and disregard" its standards to win business, a federal lawsuit alleged, contributing to one of the most devastating financial collapses in history.
Read more at Click here / www.trade4x.net
In May 2004, as the U.S. housing market was heating up, Standard & Poor's Financial Services lost to a rival a huge deal to rate mortgage-backed securities to be issued by a major Japanese bank.
The reason? S&P's credit standards were too high, an employee complained to his boss.
The company then went on to "downplay and disregard" its standards to win business, a federal lawsuit alleged, contributing to one of the most devastating financial collapses in history.
Read more at Click here / www.trade4x.net
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