Ready for the green light.
The ratings agency is finally paying its fine for having the audacity to downgrade the U.S. sovereign credit rating, making amends for being a little too bullish on mortgage-backed securities in exchange for money, or a little bit of both. Either way, it’s $687.5 million to the Feds, $687.5 million to the states and $125 million to CalPERS, allowing it to return to its merry ways.
“As S&P admits under this settlement, company executives complained that the company declined to downgrade underperforming assets because it was worried that doing so would hurt the company’s business,” he said. “While this strategy may have helped S&P avoid disappointing its clients, it did major harm to the larger economy, contributing to the worst financial crisis since the Great Depression.”