- 05 Aug 2011 at 8:15 PM
A mathematical error discovered late Friday by Treasury Department officials threw into limbo, at least temporarily, plans by ratings firm Standard & Poor’s to downgrade the top-notch AAA credit rating the U.S. has held for 70 years, people familiar with the matter said. The wild back and forth between the Treasury Department and S&P Friday afternoon illustrated the dramatic stakes as the ratings firm moved to downgrade the debt.
S&P officials still had not decided how to proceed and could move forward with a downgrade despite the issues raised by the White House, the people familiar with the matter said. A decision could come later Friday. S&P officials notified the Treasury Department early Friday afternoon it was planning to downgrade the debt, a government official said, and the firm presented its report to the White House. S&P has previously warned such a downgrade might come if Washington didn’t move to comprehensively tackle its long-term fiscal woes.
After two hours of analysis, Treasury officials discovered that S&P officials had miscalculated future deficit projections by close to $2 trillion. It immediately notified the company of the mistakes. S&P officials later called administration officials back to say they agreed about the mistakes, though they didn’t say whether it would affect the rating. White House officials remained waiting Friday evening to see what the company would do.
- So Standard & Poor's Maybe Can't Do Basic Math, So What? August 5, 2011
- Steve Cohen Needs Your Best Trade Ideas April 16, 2014
- Goldman Sachs Suggests NYTimes Sleep With One Eye Open April 16, 2014
- Who Wants To Buy A Las Vegas Resort? April 16, 2014
- Layoffs Watch '14: Credit Suisse April 17, 2014
- Start Looking For ‘High-Utility’ Insults To Replace The Obscure Ones You’ve Been Using April 16, 2014
- Beacon Hill Driver Lets His Vanity Plate Talk For Him April 17, 2014
- Write-Offs: 04.16.14 April 16, 2014
- Bonus Watch ’14: BlackRock CEOs April 16, 2014
- Paul Flowers Now Really Sorry About Those Times He Bought Coke, Crystal Meth April 16, 2014
- Executive Editor
- Bess Levin
How Can We Help You?
- Send tips to:
- For tech issues email:
- For advertising or events email:
- For research or custom solutions email:
- Dealbreaker is published by Breaking Media.
For a full list of our sites, services and staff visit breakingmedia.com