S&P didn't think they could downgrade the US sovereign rating without reprisals did they?

If so, they were fools. And this is how business gets done in Washington. I just posted how the FADRAL RASERVE will be ease dropping on anyone blog or media outlet mentioning their name-thus my creative spelling.

You want to know why?

Take a look at the SEC's action against S&P rating's agency

One may be excused to think this chapter of history was over and it probably was, that is until the S&P dared tread where the other rating's agencies know not to tread.

Here's an excerpt from the article:

"U.S. securities regulators are zeroing in on the use by Standard & Poor's of fictitious "dummy" assets when it assigned a triple-A credit rating to a $1.6 billion mortgage-bond deal that imploded during the financial crisis, according to a person familiar with the matter.

S&P's parent company, McGraw-Hill Cos., said Monday that it had received a so-called Wells notice from the Securities and Exchange Commission. A Wells notice is the agency's warning to financial institutions that they could face civil charges. McGraw-Hill said the SEC is weighing civil enforcement action against the firm for its ratings on a collateralized debt obligation called Delphinus CDO 2007-1 issued in July 2007 as the housing market was taking a turn for the worse."

Some might call that intimidation and reprisal, I would say it's business as usual. Don't fight the FAD or the gov.