S&P Claims Federal Lawsuit Retaliation for Credit Downgrade

Not because of toxic mortgages

SANTA ANA, Calif. - The government's $5 billion lawsuit against Standard & Poor's is a "meritless" action filed in retaliation for downgrading the nation's credit rating to AA+ from AAA, the credit-rating agency claims in its defense.

In a legal response filed Tuesday, S&P denied allegations that it misled federally insured banks and credit unions by rubber-stamping toxic mortgage-backed securities with the agency's top investment grade.

The company suggests the government's action is politically motivated, and says the lawsuit violates its free speech rights, and is "meritless" and "unconstitutional."

Comments

[Sevo]

If that isn't chilling speech, I don't know what would qualify.

[Alien Invader]

How about "...and the beatings will continue until morale improves."

[johnson29]

Seniors who have taken advantage of this government-insured program are ecstatic about it. For many, it has been a lifesaver. If you are 62 years of age or older and own your home, you should qualify. Qualifying is simple ? no income or credit score verification.

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