More on The S&P Rating's Agency Investigation

In this post I told you about the SEC's Investigation of the S&P Credit Ratings Agency

At the time the Rating Downgrade occurred on August 5th, it was known that the Treasury and White House had known about the impending action on Friday morning, the action coming late Friday.

Now the SEC says it won't name names in it's investigation, but one of the NRSROs not only had conflicts of interest, but leaked the rating downgrade. That leaves very little to the imagination as to who they are talking about being only 1 US rating's agency downgraded the US, the S&P.

Bloomberg Headlines:

*SEC SAYS `LARGE' CREDIT RATER APPEARED TO LEAK PENDING RATING

*SEC DECLINED TO IDENTIFY WHICH RATER MAY HAVE LEAKED DECISION

*SEC STAFF FOUND CONCERNS AT EACH OF THE NRSROS

The Staff is concerned that the apparently unnecessary delay in release and publication of some credit rating actions increases the possibility that pending credit rating actions will be inappropriately disseminated.

*SEC STAFF FOUND FAILURE IN MAKING TIMELY/ACCURATE DISCLOSURES

*SEC STAFF CITES SOME FAILURE TO MANAGE CONFLICTS OF INTEREST

But have ni fear, this will not continue:

*SEC DECLINED TO NAME NAMES IN CREDIT RATERS REPORT FOR FAIRNESS

*SEC STAFF EXPECTS CREDIT RATINGS AGENCIES TO ADDRESS CONCERNS

It wouldn't surprise me one bit and this is the inside information I talk about nearly everyday here at wolf on Wall Street.

Here's what the market looked like that week.

The yellow arrow is August 5th, the action came after the market close, the yellow box is the week of August 1-5.

I'm sure you can come to your own conclusions. However, I will remind you that was a week in which we had seen some strange signals.