3 chapters across the catalog
Standard & Poor's Resignation, Citigroup, Secret Fed Loans
Devin Sharma, the president of Standard & Poor's, resigned shortly after the firm downgraded U.S. government debt. He is being replaced by Douglas Peterson, a top executive from Citigroup. This move follows reports that the Federal Reserve provided $1.2 trillion in secret loans to major banks like Citigroup and Bank of America, a story largely ignored by mainstream news.
Dodd-Frank Act, Ratings Agency Regulation Conflict
Standard & Poor's president Devin Sharma reportedly authored an op-ed criticizing government regulation of ratings agencies. The Dodd-Frank Act contains provisions that would allow the government to regulate and test employees of these agencies. Ratings firms like Moody's and Fitch are reportedly resistant to these new federal oversight requirements.
Political theories regarding the S&P downgrade include alleged ties between Terry McGraw III and Mitt Romney. Congressman Ron Paul expressed disappointment that the downgrade was linked to a lack of tax increases rather than a failure to control spending. The hosts suggest the downgrade may be a retaliatory move by S&P against the Obama administration's regulatory agenda.
