S.& P. E-Mails on Mortgage Crisis Show Alarm and Gallows Humor - BY MARY WILLIAMS WALSH AND RON NIXON DealBookQuicklink submitted by Susan Lee Schwartz Permalink
|The S&P served the banks which paid them, and not the public, which is a conflict of interest. 'The correspondence, made public in court documents late Monday, provide a glimpse at the inner workings of an institution that the Justice Department says fraudulently inflated credit ratings, with dire consequences for the entire economy. In a series of e-mails, tensions appeared to be escalating inside the firm's headquarters in Lower Manhattan as it publicly professed that its ratings were valid, even as the home loans bundled into mortgage-backed securities, or M.B.S., were failing at accelerating rates.'...'Together, the documents show a portrait of some executives pushing to water down the firm's rating models in the hope of preserving market share and profits, while others expressed deep concerns about the poor performance of the securities and what they saw as a lowering of standards.|
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