Wednesday, February 13, 2013

The vendetta against S&P, part II

My last column on the federal suit against the bond-rating agency Standard & Poor’s drew some critical reactions that are worth sharing with readers. In the column, I argued that S&P, which badly erred in rating bonds tied to home mortgages, was being made a scapegoat for the financial crisis. As is well-known, this crisis — with some exceptions — was not foreseen by government officials, economists or bankers. S&P’s sins, I wrote, stemmed more from this over-optimism than from a deliberate effort to mislead markets.

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