Is it possible that the Credit analysts who rated subprime junk as AAA at S&P are even more odious, more corrupt, more execrable than I previously imagined?

As this email from the government’s complaint (via Dealbook) shows us, yes!


[S&P analyst]: With apologies to David Byrne…here’s my version of “Burning Down the House“.

Watch out
Housing market went softer
Cooling down
Strong market is now much weaker
Subprime is boi-ling o-ver
Bringing down the house

Hold tight
CDO biz — has a bother
Hold tight
Leveraged CDOs they were after
Going — all the way down, with
Subprime mortgages

Own it
Hey you need a downgrade now
Huge delinquencies hit it now
Bringing down the house.


video after the jump



Hat tip Jonathan Miller

Category: Derivatives, Legal, Real Estate

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

11 Responses to “S&P Analyst: CDOs Are ‘Burning Down the House’”

  1. ReductiMat says:

    Unlike everyone here, I am 100% confident the Justice Department will find the junior analyst that masterminded, lead and executed the rampant fraud at this particular rating institution and hold him or her fully accountable to the law.

  2. whatdoiknow says:

    Whether it was incompetence, or nefarious intent, or both… Standard and Poors must be made to pay for their catalytic role in the financial collapse. Make them all sit in a pit (ala. Woody Allen with the life insurance salesman) with Angelo Mozilo for 10 years. That outta do it.

    My wife thought I was performing a belated Ravens-win-the-Superbowl dance when I read the gubmint was finally going after these clowns.

  3. drocto says:

    It’s called gallows humor. Relax. Without knowing the person who wrote it and the context, it’s hard to say.

  4. MidlifeNocrisis says:

    HaHaHa. Byrne/Barry/Byrne. Excellent!!

  5. forwhomthebelltolls says:

    I forgot what a good tune that actually was.
    Radio overplay killed it for me.

  6. beaufou says:

    This is what Sauron said he was questioned about his shitty deals. Copy and paste S&P:

    “While we strongly disagree with the SEC’s complaint, I also recognise how such a transaction may look to many people,” he says. “To them, it is confirmation of how out of control they believe Wall Street has become, no matter how sophisticated the parties or what disclosures were made.”

    He adds: “We have to do a better job of striking the balance between what an informed client believes is important to his or her investing goals and what the public believes is overly complex and risky.”

  7. ToNYC says:

    No one could have seen it coming.
    It all happened so fast.

    It is still hitting the fans.
    Now that we know, and have identified the Enemy, we can find out more ways they are like us and not so bad after all as usual in phase deux.

  8. Moss says:

    Fight fire with fire.

    Maybe the legal system in this country is finally going after the financial fraud.

  9. Greg0658 says:

    one thing Moss and thread – this is not productive GDP – chase’g crooks with foreign mined and manufactured products is anti-GDP .. not saying it shouldn’t be done – just putting this money spent in its place .. golf anyone ? seems May is coming early this year

  10. ToNYC says:

    Floyd Abrams has decided to sell that you can’t blame S & P for guessing wrong about the future like the other bad boys, but the other loaf of bread under his left arm is failing to adjust to the present preserved in contemporary email as it exists in 2007, fresh baked. First come, S & P, not as they like it.

  11. you know, I’m surprised that no one has commented on this Dude, the Author of this ‘re-write’..

    here’s U$D 100 Saying, that if you cross-referenced this Dude’s Expense Accounts, you’d, quickly, find that ‘He Pays for It.’

    “It” being the operative pronoun..