By Andrew Butter (Guest Post)
The irony of the U.S. sovereign credit downgrade is that the whole reason the Big Three US rating agencies exist is that they were granted a lucrative concession (by the government) to pontificate about what risk weighting can be assigned to a security put up by a financial entity (like a bank), as collateral on a loan…in order to prove (to the government) that they (the banks) were “adequate”. So the “brave” S&P decision was a bit like biting the hand that feeds or the child who stupidly pointed out that the king wasn’t wearing any clothes. Whether S&P will…
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