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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