I am happy that government is suing these rating agents !!
It is time for them to pay back !! They are the biggest root causes of the housing and financing bubbles. Millions people lost their jobs and homes because of these bad rating agents. They assigned AAA to anything before 2007, then lower their rating on anything during the crisis to make thing even worst !! I wonder if they also purchased the stocks when they were going up and then shorted the stocks when they were going down. I wish government get back all their profit and bonus of last 20 years and also put most of these agents in jail !!
Rating agents should be non-profit and independent of any financial companies. However, these 3 agents have so much business with wall street and banks. It is not right !
They trusted the banks and mortgage companies and rating agencies to do the process correctly.
For example many refinanced at fixed rates then were fooled into refinancing at variable rates without understanding the situation. I liken it to a teacher taking advantage of a student or pries taking advantage of a child the person with the authority is the person who is to blame. In addition I like how they say no one knew this was going to happen when the radio ads were talking about people who we re living in a motel buying a house with no money down. Believe it or not many immigrants were told by other newcomes that they could own homes and just in the US they se so many things that they did not have where they came from I honestly beleived they thought houses and loans were given out to anyone. Put yourself in their shoes. Of course for several years a lot of people on the servicing side knew this was a big sham and that the loans would never be paid back but they made huge commissions and also bet correctly that Hank Paulson etc would bail them out. Not sure where this wil end but good that something is finally coming of this debacle I never thought I would see it !