This has been a very long time coming. These are the agencies who were the handmaidens of Wall Street. They played the Authur Andersen to the banks Enron.
S&P, Moody’s and Fitch have long faced criticism from investors, politicians and regulators for assigning high ratings to thousands of subprime and other mortgage securities that quickly turned sour.
Standard and Poors had the nerve to downgrade the credit rating of the United States, even though their credibility is questionable at best. Now it’s time to get a taste of their on medicine. In truth this is really all about a bunch of very smart people who were caught up in groupthink. The banks, the Federal Reserve, the SEC and the credit rating agencies all thought they had the answers.