and as far as looking at the evidence, really it went higher at moody s than it went at s&p. at s&p, you have people pretty close to the top. and then at the top, the ceo saying, warning the board at one point that they may be risking the quality of their ratings by chasing profits. so as a legal case it sounds as though it may be not as strong against s&p, which did get sued but they down graded. what happened this week that brought our attention to it, because the lawsuit was filed in september of 2013 is this guy harold mcgraw iii, a powerful guy, files a declaration in a lawsuit. this is sworn testimony by this man who we were told earlier this week is not a political man. not somebody who is a shield for the left or right. and let s put it on board for what he is alleging under oath. that he got a call from tim geithner after the downgrade, and he says tim geithner says
and as far as looking at the evidence, really it went higher at moody s than it went at s&p. at s&p, you have people pretty close to the top. and then at the top, the ceo saying, warning the board at one point that they may be risking the quality of their ratings by chasing profits. so as a legal case it sounds as though it may be not as strong against s&p, which did get sued but they down graded. what happened this week that brought our attention to it, because the lawsuit was filed in september of 2013 is this guy harold mcgraw iii, a powerful guy, files a declaration in a lawsuit. this is sworn testimony by this man who we were told earlier this week is not a political man. not somebody who is a shield for the left or right. and let s put it on board for what he is alleging under oath. that he got a call from tim geithner after the downgrade, and he says tim geithner says you have done an enormous
here s what the complaint asserts, that the considerations regarding fees, market share, profits, relationships with issuers, improperly influenced s&p s rating criteria and models. what they re saying is there s two sides to the business at s&p. they give ratings on things like mortgage backed securities, the instruments that caused the financial crisis when homeowners couldn t pay their bills. they re saying the church and state, if you will, that s supposed to be in place at s&p was not in place and that fees are being collected based on these good ratings. they say that s illegal behavior. there s also kind of an interesting component in that they ve got in witness analyst d, if you will, at s&p who was basically using the ole talking heads song from the 80s, burning down the house. he was putting out a video, an e-mail, making jokes about the fact that the house was going to burn down, but s&p was still handing out these good ratings. to be continued, shannon. obviously this is a
juliet: from the big shocker headlines, the s.e.c. is investigating s&p, big surprise. the commission is asking preliminary questions, in what is going on at s&p, and the investigation of possible insider trading, now, at standard & poor s, among some of the rumors of the decision according story, the s&p director at some point, during the questioning hinted at tea party rhetoric playing a part and that the spokesman for agency denies any wrongdoing in all of this. mike: what are they saying? the s&p leaked the information to outside parties financial and political people. clayton: the idea that there could be insider trading is just
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