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URL:  http://boards.fool.com/financial-reform8217s-triple-8220f8221-30563600.aspx

Subject:  Financial Reform’s Triple “F” Date:  2/26/2013  8:19 PM
Author:  lindytoes Number:  48111 of 63308

http://blog.alfranken.com/2013/02/26/the-american-prospect-f...
The American Prospect: Financial Reform’s Triple “F” Rating
<snip>
Earlier this month, the Justice Department and 16 state attorneys general sued the Standard and Poor’s (S&P) credit-rating agency, accusing the company of improperly inflating the ratings of 40 collateralized debt obligations (CDOs)—essentially, securities made up of other mortgage-backed securities—at the height of the housing bubble. According to the suit, S&P misled investors by rating the risky securities as “triple-A,” super-safe investments. But the purchases turned into massive investor losses when the bonds failed after the bubble collapsed. Using emails and other communications, state, and federal prosecutors will seek to prove that S&P knew the securities were junk but rated them highly for the most obvious of reasons: to make more money.
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