American Fortune Life

In this financial crisis, it can be argued that, in addition to the bankers on Wall Street, another criticized credit rating agency has been criticized for failing to scrutinize credit derivatives, resulting in uneven products.

During the rapid development of the real estate industry, investor subprime transactions amounted to millions of dollars. Everyone is accusing S&P and its main competitors, as well as other rating agencies, of unfair competition due to inherent conflicts of interest and the fact that many securities are rated with the care of their analysts, which harms everyone.

The credibility of international rating agencies began to be questioned in the wake of the financial crisis, and the Financial Crisis Investigation Commission stated in a report that the downgrading of these securities “helped” erase nearly $11 trillion in wealth for American households.

At this time, S&P was perceived by many in the United States as incapable of engaging in constructive dialogue or understanding basic economic concepts, and only spreading "lies”.

“Boom!”

Under the cloudy New York sky, on a lush golf course, Andy, dressed in a white t-shirt and white casual pants, waves a club and hits a golf ball with a beautiful arc in the air, landing on a hillside not far from here.

“Good shot! ”

“Thank you,” said Tivenshama, the new president of Standard & Poor's dying assignment, with a brilliant smile on his face and a compliment to a guest clapping his hands. Andy handed the club to the boy with the club bag, pressed down the cap of the baseball cap, and Tivin Sharma stepped on the lawn and walked leisurely to the next area.

“Hoo--”

“To be honest, I'd really like to thank you for inviting me, and I don't even have time for a break.” Though Andy Smith is not very familiar, Tivenshama does not prevent him from drawing his JIAO wrist closer to each other.

“ We can understand why people question us so much. We understand that sometimes it feels a little unfair. We play a limited but important role in the market. We bring important benchmarking information on credit. If you look at past records, we rated $32 trillion, of which "subordinated debt" is only $2 trillion. While there are no other problems, we are also disappointed that there are problems with "subordinated debt”. ”

Tivenshama looked at the vast field scenery with great emotion and continued to talk about the previous topic. He also defended his succession to Standard & Poor's. Although there was no need to explain the defense to Andy Smith at all, he preferred Andy Smith's friendship in the face of a new king who had a media empire and was tearing it apart from the old media empire news group.

“It must be said, however, that the rating reports issued by Moody's, Mercy and S&P have great influence and have a direct impact on global investors' investment decisions on national treasury bonds, corporate bonds, etc.” Alvitelli on the side bluntly said that his heart was overwhelmed by Tivenshama's defense, but after all, he came to the other party for help, so it didn't sound bad, otherwise his words would become, all three rating agencies are suspected of misleading ratings in the mortgage business!

“Huh.” Andy shook his head with a smile, tidying up the white half-finger gloves on his right hand, "the financial crisis has become the past, and the consequences are serious, and the key now is that, not what you say, but what we all think, someone or company has to come forward and take responsibility, become the culprit and scapegoat of this financial storm. ”

Andy, with a bright smile on his face, looked at Tivenshama with a bitter smile, and said profoundly: "And, according to some of the information I have, your situation in S&P is worrying, many people need to borrow your S&P head! ”

“How is that possible?! ”

Tivenshama's complexion changed dramatically at this time, adding fury. He did not question the authenticity of Andy's words. When he received Andy's invitation to call, he kept thinking about the other party's purpose. The final conclusion was that the other party was at war with the news group, perhaps they needed their help from S&P. There were still some difficulties. How can both sides not be guilty and get Andy's friendship, so he refused some excessive aids. Now, it seems, don't say no, face the other party's bait, that is to spit blood and eat.

Instead of ignoring Tivenshama's shock, Andy reached out and put a cold shed on his eyes, looking out over the distance, and said softly, "Nothing's impossible...

By the way, the UK has expanded its judicial investigations into media eavesdropping scandals under the auspices of news groups as the spectrum of telephone eavesdropping has widened. Meanwhile, U.S. Congressmen have increased pressure on the FBI to investigate whether media outlets under the News Group are engaged in similar misconduct in the United States. What do you think of the dilemma faced by news groups, whether they face “increased business and reputational risk”? ”

Showing a sudden reminder of something, a pair of Andy very curious to consult the professional's expression, Tivenshama almost suffocated an old blood, but with a helpless smile on his face, he had determined Andy Smith's purpose of inviting him, and at the same time had to give in to his heart to feel the richest and harsh of this young world, and to carry out the information in the hands of the other party that was useful to their S&P.

Tivenshama thought for a moment, then made a decision, and Andy grinned with a shake of his head: "Yes, with the spread of the wiretapping incident, our agency conducted a credit assessment of the news group, which was not optimistic, and decided to place the group's BBB + rating on the negative watch list. However, for the sake of security, and pending developments, it was not yet intended to be made public. ”

“Is the BBB + rating on the negative watch list? Business and reputation risks have increased to such an extent that credit ratings have not been downgraded?” Andy seemed to be mumbling in incomprehensible self-talk.

“Cough, that actually means our agency may have downgraded its News Group credit rating.” Tivenshama's harsh comments about Andy have risen to cruelty. He's really going to beat the news group to death!

“Well...” Andy's slightly wrinkled eyebrows stretched, seemingly answering the question, smiling and saying to Tivenshama: “Look at me, I'm sorry, my mind jumps too far at times and often turns off the subject, by the way, just now I hear some news, I don't know if it works for you, it seems peanuts are pushing many people to accuse S&P of exaggerating mortgage-backed securities ratings and falsely claiming that there is no conflict of interest in ratings. And there is an investigation allegation that your rating company helped trigger the financial crisis by giving subprime mortgage support bonds the highest rating in order to win the Wall Street banking business. ”

“This is a complete slander...” As soon as he heard the news, Tivenshama's heart also chirped, but there were no surprises, and the wind was not new to him, so he was not afraid to argue.

However, as I just said, Alvitelli on one side is a blunt ghost: “Many in Washington believe that it is entirely at the decision-making level that S&P decides whether to downgrade a company or a country. For example, when rating mortgage loans, analysts report that ratings need to be lowered, but S&P decision makers hide the facts and still give high ratings.

If the government finds evidence to support the investigation, S&P's long-standing claim that the analyst's assessment is independent of the business will be challenged. The sole LIxing reputation of S&P analysts is bound to be severely damaged and may even trigger civil action for compensation. ”

“This...” Tivenshama's face changed slightly and her eyebrows crept into contemplation.

“By the way, Mr. Sharma, is it true that the press corps has not met the criteria for demotion? I'm really worried about... ”

Once again, Andy's anachronistic problem led Tivenshama to make a trade-off by biting his teeth and staring at Andy and saying, “Indeed, it is prudent to consider, be accountable to the financial markets and investors, be affected by the eavesdropping scandal, weaken the group of senior executives of news groups, be forced to abandon strategic xing business opportunities and possibly be alienated by customers. You should really lower your credit rating! ”

“Bang!”

Andy clapped his hands and said in disgust: "Look at me and forget the most important thing. I heard a friend say that the Justice Department is considering a detailed investigation into Standard & Poor's on the grounds that the violation is rating 12 mortgage securities. ”

Tivenshama's pupils shrunk sharply and shocked, but instead of rushing to react, he continued to look at Andy, because the news could not be exchanged equivalently for the benefits Andy Smith might derive from downgrading his credit rating to a news group.

“By the way, there is one more piece of information that may be useful to you, and the White House seems to be drafting a new Financial Reform Bill that requires SEC to reform the financial sector, including reducing conflicts of interest in the rating industry, assuming the corresponding legal responsibility for ratings by rating agencies, and reducing investor reliance on rating agencies. Government regulators are also required to inspect the various financial regulations and repeal the relevant provisions of the Credit Rating Reference.” Andy said softly with a smile.

“Hiss -” Tivenshama couldn't help but sip the cool air in her heart, watching Andy's eyes shine brighter and flashing, sincerely saying: “Thank you very much! ”

Andy shook his head and smiled, revealing his big white teeth and his smile grew brighter and brighter.

The next day, Standard & Poor's, one of the top three rating agencies in the world, warned on the 18th that it had lowered its credit rating on news group BBB + as the scope of telephone tapping had gradually expanded...