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S&P's President ... Gone ... - 8/23/2011 7:09:54 AM

FirmhandKY

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Deven Sharma Is Out As President Of S&P, Citi Exec Is In

Just weeks after Standard & Poor’s downgraded the credit of the U.S. the ratings agency announced that its president of four years is stepping down.

The McGraw Hill Companies announced that Deven Sharma, 55, will step down next month and will be replaced by Citigroup COO Douglas Peterson.

...

... Treasury Secretary Timothy Geithner who said the S&P’s decision [the downgrade] shows “a stunning lack of knowledge about basic U.S. fiscal budget math. And I think they drew exactly the wrong conclusion from this budget agreement.”

Three comments:

1. Undue pressure?
2. Replaced by the Citi Bank COO?
3. Geithner had it right ... if he were talking about himself.

Firm

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RE: S&P's President ... Gone ... - 8/23/2011 7:22:58 AM

mnottertail

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Credit rating services are a fuckin joke. Having said that.....who cares?

Thats where I am at here.

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RE: S&P's President ... Gone ... - 8/23/2011 7:30:27 AM

Owner59

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I think the 2 trillion accounting error might have had something to do with it.

Edited....

< Message edited by Owner59 -- 8/23/2011 7:57:17 AM >

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RE: S&P's President ... Gone ... - 8/23/2011 7:53:10 AM

mnottertail

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jave? jave? you might be next to go.......

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RE: S&P's President ... Gone ... - 8/23/2011 9:56:30 AM

FirmhandKY

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quote:

ORIGINAL: mnottertail

Credit rating services are a fuckin joke. Having said that.....who cares?

Thats where I am at here.

Ok. But why are they a joke?

Firm

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RE: S&P's President ... Gone ... - 8/23/2011 9:58:29 AM

mnottertail

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How did they do on derivitives, for example? All the swaps and mortgage meltdown. They skyed them ratings. Some of the big places on Wall that failed? How about some banks?

They downgrade way after the shit has hit the fan, I can grade them by the newspaper.

< Message edited by mnottertail -- 8/23/2011 10:00:42 AM >

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RE: S&P's President ... Gone ... - 8/23/2011 10:09:04 AM

Termyn8or

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Hey, then maybe you should publish your own figures. If your numbers keep coming up more accurate than theirs maybe you have a new cushy job. Put their ass out of business. Call it Ron's Absolute Portent Estimations. R.A.P.E. for short.

Just don't forget where you got the idea when you make it big.

You may find this hard to believe but I am really not being sarcastic. Who the fuck made them experts, considering the fact that they obviously are not ?

T^T

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RE: S&P's President ... Gone ... - 8/23/2011 10:19:22 AM

Aylee

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quote:

ORIGINAL: FirmhandKY

Deven Sharma Is Out As President Of S&P, Citi Exec Is In

Just weeks after Standard & Poor’s downgraded the credit of the U.S. the ratings agency announced that its president of four years is stepping down.

The McGraw Hill Companies announced that Deven Sharma, 55, will step down next month and will be replaced by Citigroup COO Douglas Peterson.

...

... Treasury Secretary Timothy Geithner who said the S&P’s decision [the downgrade] shows “a stunning lack of knowledge about basic U.S. fiscal budget math. And I think they drew exactly the wrong conclusion from this budget agreement.”

Three comments:

1. Undue pressure?
2. Replaced by the Citi Bank COO?
3. Geithner had it right ... if he were talking about himself.

Firm

He is sticking around as an adviser to the new guy for a year, so I am not so sure that it is a big black cloud he is leaving under.

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RE: S&P's President ... Gone ... - 8/23/2011 10:19:33 AM

tazzygirl

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~FR

Yet they are keeping him on for 4 months in an advisory position.... hmmm

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RE: S&P's President ... Gone ... - 8/23/2011 10:25:37 AM

EternalHoH

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quote:

ORIGINAL: FirmhandKY

Ok. But why are they a joke?

Firm

Because they are only peddling "opinions", which is how the ratings agencies defended themselves for being wrong in congressional hearings, those first amendment lawyers they hired were quick to point out that "opinions" are all they give. And the financial crisis of 2008 showed that their "opinions" had been for sale to the highest bidder for quite some time, thus all the AAA ratings on all those companies who were peddling mortgage junk, in addition to AAA ratings on the junk itself.

Their "opinions" have become irrelevant in the context of lawmaking in this country. Hence the provision in Dodd-Frank to replace them with alternate regulations, which as a lawmaking body, congress has the ultimate provision to do, at least so when it comes to Uncle Sam's finances. Only lowly suckers out there like you paying loan shark interest rates on credit cards and loans will still be subjected to the whims of blatantly corrupt ratings agencies "opinions". In essense, this private sector machine got so corrupt and so bad at its job, the government is throwing them overboard when it comes to assessing its own finances. There will never be another downgrade on govt debt like we saw. The mechanism will be replaced by other regs before that happens.

http://www.bankinvestmentconsultant.com/news/banks-regulation-debt-rating-downgrade-2674577-1.html

Quote

"It will reinforce the view of those in Congress who believe that Dodd-Frank made the right decision," said Wayne Abernathy, executive vice president of financial institutions policy at the American Bankers Association and a former Treasury official in the Bush administration. "What they will say is, 'We put this provision in Dodd-Frank because these are largely as educated opinions as you want to grant them, but they're educated opinions, and they shouldn't be carrying with them the force of law.'"

Also, think of it this way, how does the government fire up the anti-trust chainsaw and go after "too big to fail", to avoid having your taxpaying ass having to bail out the gambling elites among us once again, when the same industry has power over the credit ratings of the government. You have to free the government's finances from these corrupt "opinions" first.

The entire downgrading exercise was a joke, run by the Madoffs of the credit industry. It amazes me how people on one side of the political aisle all of a sudden act as if these same ratings agencies who were so wrong and so corrupt from 2000 to 2008 all of a sudden believe these same companies that are still run by the same execs are suddenly 'golden' in their analysis, are beyond critical reproach, and are such great truth-tellers simply because of who they are critical of this time around.

< Message edited by EternalHoH -- 8/23/2011 10:56:26 AM >

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RE: S&P's President ... Gone ... - 8/23/2011 6:54:28 PM

tweakabelle

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quote:

ORIGINAL: FirmhandKY

quote:

ORIGINAL: mnottertail

Credit rating services are a fuckin joke. Having said that.....who cares?

Thats where I am at here.

Ok. But why are they a joke?

Firm

Some possible answers are offered here.

Economics Professor Hudson analyses the ratings agencies and finds they are incapable of giving objective ratings due to, among other things, a blatant conflict of interest.

I don't profess to know all the details of the case studies he examines, but those parts of his review that I am familiar with rang true. Also, one would think that an ability to do basic arithmetic correctly ought to be a minimum requirement in the ratings game. This is an area where S & P have shown themselves to be deficient.

Well worth a read. While I'm unable to endorse his findings fully, it's definitely more evidence to support the argument that capital ought to be subservient to appropriate democratic controls, and the current pursuit of an ideologically- and greed-driven economic agenda without regard for social consequences must be rejected.

< Message edited by tweakabelle -- 8/23/2011 7:10:02 PM >

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