Post by J85K on Jul 7, 2016 9:24:53 GMT -4
www.caribbeannewsnow.com/headline-Commentary%3A-%2430b-in-losses%2C-24m-victims%3B-just-once%2C-I-would-like-to-see-Wall-Street-held-accountable-31001.html
Commentary: $30b in losses, 24m victims; just once, I would like to see Wall Street held accountable
Everyone knows that the 2007-2008 financial crisis was a result of the big three credit rating agencies, knowingly and willingly, issuing high credit rating for packages of mortgages that everyone in the industry knew were unpayable. The banks then knowingly and willingly sold those mislabeled investments to innocent investors. The rating agencies and banks earned record fees and the American economy lost trillions of dollars. Only one poor banker was ever prosecuted. So why not do it again? So they did.
We know that trillions in municipal bonds are now in the market place carrying ratings that indicate they are safe investments. A simple read of the bonds offering memorandum shows many of the issuing agencies to be technically bankrupt. These Issuing agencies have huge, unmanageable pension obligations. Many of these agencies are also facing significant lawsuits, are in violation of critical bond agreements and reflect actions that indicate unsafe management by the agencies’ leaders. Still, they receive investment grade credit ratings.
Commentary: $30b in losses, 24m victims; just once, I would like to see Wall Street held accountable
Everyone knows that the 2007-2008 financial crisis was a result of the big three credit rating agencies, knowingly and willingly, issuing high credit rating for packages of mortgages that everyone in the industry knew were unpayable. The banks then knowingly and willingly sold those mislabeled investments to innocent investors. The rating agencies and banks earned record fees and the American economy lost trillions of dollars. Only one poor banker was ever prosecuted. So why not do it again? So they did.
We know that trillions in municipal bonds are now in the market place carrying ratings that indicate they are safe investments. A simple read of the bonds offering memorandum shows many of the issuing agencies to be technically bankrupt. These Issuing agencies have huge, unmanageable pension obligations. Many of these agencies are also facing significant lawsuits, are in violation of critical bond agreements and reflect actions that indicate unsafe management by the agencies’ leaders. Still, they receive investment grade credit ratings.