Thursday, August 18, 2011
Another shoe drops
Did S & P consider this when they entered the world of politics with their ratings?
Los Angeles, which recently saw its $7-billion investment portfolio downgraded by Standard & Poor's, has decided to no longer hire the rating company to rate the soundness of the city's investments.All because they dabbled in the field of mortgage fraud for profit.
"We have really lost faith in S&P's judgment," Interim Treasurer Steve Ongele said. After its downgrade of U.S. debt last week, S&P cut its rating of L.A.'s general investment pool to AA from AAA. It also downgraded dozens of other municipalities with large investments in U.S. Treasury notes.
One of them, Northern California's San Mateo County, has decided not to renew its contract with S&P. Florida's Manatee County has also dropped its contract with the company, according to news reports.
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