Excuse my ignorance, but what is the relationship between the SEC and the Dept. of Justice? According to Taibbi, the SEC is so corrupt with a revolving door in and out of Wall Street’s who’s who of criminal activity that any substantive investigation is *extremely unlikely*.

What’s the statute of limitations on this kind of crime? Can the investigation be completed before it runs out?

I was just going to say that. Kudos to you for being first!

After they get finished with their little investigation that will no doubt remove all fingers that point to themselves, we should have a citizen investigation of the SEC!

Bingo! Well and truily said, YSD.

As well, “better late than never”, smacks of “half”-fast or half-assed, more than it does of conscious understanding of fundamental Constitutionally required duty, respect for the rule of law, or even of conscience.

I will agree that this has meaning or significance ONLY when evidence, real evidence, is presented to be worthy of such conviction, or, not to be punny, in the least … actual “convictions”.

It may be quite a wait, so breath-Holdering is NOT advised.

DW

Why just S&P? Didn’t Moody’s and Fitch also engage in the same behavior?

A great question, and I don’t have an answer. My understanding is that, like most other regulatory bodies of one sort or another in the USA, the SEC used to be less corrupt and play a much better role as “watch dog.” I think that all ceased years ago as corruption became de rigueur, and “greed is good” became both acceptable and expected.

I mean, fer the dog’s sake, the frickin’ SEC simply “had no idea” about Bernie Maddoff’s fraud. Gimme a break. That’s a joke. The SEC KNEW d*mn well, but I’m sure many of ‘em were in on it and benefitting from it.

It’s just like using the terminology “insider trading” is a joke anymore. That is also de rigueur anymore. And who gets busted for it? No one, or precious few.

That’s a good question. We know that DOJ is capable of dragging out investigations until the statute of limitation expires and with the alice through the looking glass world we live in, it wouldn’t surprise me in the least.

Probably true about Moody’s & Fitch, but S&P is el supremo top dog, so hopefully this is just a beginning. Would love to see ‘em go after ‘em all.

But of course with a compliant Obama Admin DOJ… ??? well, we’ll have to see if there’s any teeth in this, firstly.

Yes, Knut, is “Justice” half-fast or half-slow?

‘Tis something we all should like to know …

Half-measures to the fore … and none for the poor.

DW

Agreed. And just have to comment that I *just* sent an email to a friend who lives down under using the terminology “Alice through the Looking Glass.” Bingo (and: sigh).

I was asked by my Aussie mate: is it REALLY as crazy as it looks from here??? I said: NO. Not at all. It’s WAY WORSE than you can imagine.

Hate to be so negative, but facts are facts.

Jon mentions this will likely be a civil rather than criminal action. (Should there actually be anything actionable found.) I have long undestood that a statute of limitations time clock began at the date of discovery for civil actions, not the date of offense.

Sounds like, even though obama’s DOJ has fully stood down for TONS of criminality and looting, paybacks may be that “B” word.

But then, maybe not.

It may be quite a wait, so breath-Holdering is NOT advised

Definitely!

Cynical, as I am, with all the problems that BOA is having right now and fighting a real investigation of the credit default swap/foreclosure/mortgage fraud I’m suspicious.

Let me splain why:

First the SEC allowed that to happen with no oversight, negating their own duties. BOA is too smart not to reach out and grab the SEC before they hit bottom. When you add the fact that S&P helped them to fast track this with triple A ratings, you begin to see how the roots of that Aspen tree are connected. In fact, they are so connected they’ve gotten tangled.

If the SEC is investigating their partners in crime, it is my deep felt opinion they want to see what may connect themselves and remove it. Sorry, I don’t trust a single person there. NOT ONE!

Yes, but not to the same extent. I think the SEC is looking for what can or will slam themselves.

The Obama DOJ had just continued the program that the Bush DOJ left for them on this issue.

Here is Matt Taibbi’s just released piece on the subject. There has plenty of slammer time to go around since this administration took over the cover up in the scandals that were behind the ignition of this depression.
http://nymag.com/daily/intel/2011/08/matt_taibbi_says_the_sec_has_t.html

“Civil”, ah yes, that will be FINE with the cream, those floating smugly at the “top” of society, however uncivil such society may be being forced to become …

And now, all “statutes” wear fig-leaves, to avoid embarassing the nakedly corrupt.

Forgive my wee rant, oldnslow, but the “performance” is dreadful dreary and most emphatically uninspired.

Ho-hum … are we almost “done”?

;~DW

So if the SEC received complaints about S&P then we’d never know about them.

Thank You! Matt knows this stuff like the back of his hand. He’s been all up in there with it for a long time.

If you ask me, it sounds like the administration striking back at S&P in retaliation for its downgrading of US credit.

Perhaps the investigation by the “Justice Dept” would have been so much more meaningful had it been part of an already ongoing, greater investigation into the crooked banking and junk bonding practices that put our economy in the toilet.

Instead, the administration has spent every waking minute since first entering office colluding with these people, continuing the greatest heist of public wealth and upward funneling of same to a select few; while at the same time fueling and abetting the canard that Social Security somehow is a drain on the economy (it isn’t, it’s an entirely self-funded insurance fund) when in fact, all they really want to do is get clean away with their EMBEZZLEMENT of BILLIONS from the Social Security Trust Fund since Reagan was in office by never paying back any of the money they STOLE.

Fuck Obama, Fuck his crooked “Justice Department”; Fuck S&P; Fuck the banks and fuck those idiots in Congress for being the useful tools they have been to these sociopaths.

to illustrate the depth and breadth of my cynicism, my very first thought was the investigation was launched when some Party Mandarin in Greenwich complained of their losses

but I’m sure that’s just me

I agree but you have to remember that the DOJ is not really leading this investigation. The SEC is and the DOJ has been complicit not to ruffle the feathers of the campaign donors and people that rule DC.

It’s the whores in DC and their ties to the banksters that ought to be investigated.

This will be the last time you hear about DoJ investigating S&P. Announcement will be followed by crickets.

heh… now tell us how you REALLY feel. All kidding aside, I feel your pain and quadruple it. Amen. Tell it.

Anybody here see eric lately ?

He made a big splash about those pot criminals, then went MIA.

Does he still collect a check ?

Next question, for what ?

Yeah. Just what I was thinking. All sound & fury signifying absolutly nada, zip, bupkiss…

eric who? /s

Just love your pithy outlook.

I get it. Eric Holder’s DOJ is going to “investigate.” Soon to be heard, “Nothing to see here, move along.”

Ho-hum … are we almost “done”?

I’m just an old waitress, but when Doc Doom starts talking “double dip” and grab your canned goods and gold bars, I’d say we’re getting close

Nope. Not just you.

So, Obama had to be punched in the face before he’d realize that these sleazy people are not his friends and that he has to be fighting them on behalf of the millions of people who elected him.

Is the fight finally on? Can it be that Obama actually can lead after all? Not holding my breath…

I am soooo going out with that biker guy again :D

(Reuters) – The U.S. Securities and Exchange Commission (SEC) has asked rating agency Standard & Poor’s (S&P) to disclose which employees knew of its decision to downgrade U.S. debt before it was announced last week, the Financial Times said, citing people familiar with the matter.

SEC’s move is part of a preliminary examination into potential insider trading, the FT said.

The inquiry was made by the SEC’s examination staff, which has oversight of credit rating firms, one person familiar with the matter told the newspaper.

However, the securities regulator is not aware of a leak from an S&P insider, nor was it aware of an aberrational trade, the paper said.

S&P and SEC could not immediately be reached for comment by Reuters.

So sorry. I should have backed up my comments earlier. Have at it.

Kind of OT, but kind of Not.
As part of a large Re-Doing project of my livingroom, I had to take everything off of the big bookshelf. Amazing the stuff you find.
I discovered a flyer stuck in a book. It reads Impeach07.org – A Grassroots Campaign to Immediately Impeach Cheney and Bush.
I’m all for grassroots campaigns, but seeing the flyer just made me sad. Real Sad.

Yay! And. Yay!

S&P’s AA+ rating of U.S. debt is also a fraudulent rating. It should be rated C or lower, as it is junk.

Sad, Indeed.

I keep remembering the warnings from John Edwards about, “Two Americas”.

I remember that too. Unfortunately, that message was overshadowed by the “Two Women” fact. :(

Yep. Sorta like those 9 perps that got swallowed up in the Spitzer scandal, but we never heard about the other eight.

We know what sells, don’t we? And, what kinds of stories get the leads.

LOOK!

Look over there! OMG. It’s a cheater, it’s a shark, it’s a deficit, oh and that horrible ugly debt is going to EAT US ALIVE!

Great response, PP.

Here is another interesting article on this issue:

The Backlash Against S&P Begins – The Atlantic

A reform was proposed to fix this problem when the financial regulation bill was being created. It would have created a panel of investors who randomly pick one agency to rate every deal, which issuers could not drop.

Franken Amendment Would Bring Real Rating Agency Reform

Thanks for adding that!

The repugs and some of the Dems are fighting tooth and nail to remove the bulk of Dodd-Frank. Bernanke, Geithner, and the banks hate any attempts at regulation. They basically blocked Elizabeth Warren at every move.

it was no less than Dean Baker who pointed out Barney Frank killed the Franken Amendment in conference

comment # 55 in this fabulous Book Salon thread

Remember also that S & P is owned by McGraw, Hill and John McGraw is an ardent Republican backer of Mitt so politics first; justice maybe later?

In response to Laura G# 5 and onitgoes#8: The Financial Crisis Inquiry Commission had hearings on the ratings agencies on June 2, 2010. The top officers for Moody’s appeared and answered questions. The FCIC final report that appeared later in 2010 painted Moody’s top managers as drivenmore by the desire to maintain or increase the firm’s market share of ratings over maintaining the quality of the firm’s ratings. Nobody from S&P or Fitch testified. The FCIC provided a roadmap with names & documents if the Justice Dept. wanted to follow it, at least for Moody’s. Link here: http://fcic-static.law.stanford.edu/cdn_media/fcic-reports/fcic_final_report_chapter10.pdf

This should have happened over two years ago right after the economic meltdown but I guess late is better than never

Exactly right on better late than never. Their only job was ratings which they should have done diligently and not play politics or opportunistic market plays.

Now I think President knows what FDR faced on a daily basis without the tools he know has of SEC & Social Security when fighting depression. I hope President realizes how much debt he owes to Social Security for saving the nation and worlds economy. Another thing is market will self-correct as soon as it drops well enough for value investors to rush in and snap the stocks. Every company has an intrinsic value and each and every value investor who follows Mr. Benjamin Graham ideas will jump in at those values.

In my opinion President should consult someone like Mr. Eliot Spitzer either for him or some-one he can refer as smart, ethical, driven and diligent to head SEC. It will solve lot of problems we see in the market in the short term and also long term.

Speaking of Michael Hudson, when you have time, listen to the following:

America: Host or Parasite? — Dr. Michael Hudson _ on Guns & Butter

The Way We Were and What We are Becoming – Michael Hudson

yes they’re both corrupt but like cosa nostra factions, maybe S&P’s “move” against the government of the US, will provoke retaliation

Is “failure to uphold the law” an impeachable offense?

And what is the standard–the legal standard–required to show “failure to uphold the law”?

SEC may not be held to such a standard, but DOJ officials and White House officials surely are.