Wednesday, July 22, 2009

Bond-Ratings Are Malleable, Indeed

You don't have to be the sharpest pencil in the drawer to read between the lines here:

July 21 (Bloomberg) -- Standard & Poor’s backtracked on ratings cuts issued last week and raised the ranking on commercial mortgage-backed debt from three bonds sold in 2007.

The securities, restored to top-ranked status, had been downgraded as recently as last week, making them ineligible for the Federal Reserve’s Term Asset-Backed Securities Loan Facility to jumpstart lending

If you didn't figure it out, think Payoff. Big Payoff. Fraud. Conspiracy.

(By the way, TALF qualification allows the nuclear waste to be dumped on the US taxpayer.)

HT: Ticker

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