The Most Dubious Business in America
In the following video, John Reeves takes a look at Standard & Poor's, a subsidiary of The McGraw Hill Companies , and the legal case currently being brought against it by the Justice Department. The company is being accused of knowingly and willingly defrauding investors, and a key part of the prosecution's case will be proving S&P knew ahead of time that the credit ratings it assigned to numerous mortgage-backed securities were inaccurate. John examines the paradox between S&P attempting to show that it had no way of knowing what the actual credit ratings should have been when in fact its business is exactly that -- and it is paid quite a lot of money to do so.
The recovery continues
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The article The Most Dubious Business in America originally appeared on Fool.com.John Reeves has no position in any stocks mentioned. The Motley Fool recommends Goldman Sachs and owns shares of Citigroup and JPMorgan Chase. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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