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S&P Withdraws AAA Rating On German Bonds, Blames Administrative Error, Promptly Reinstates Rating
Now this is funny- we have just officially had the latest iteration in the "fat finger" mythology: S&P accidentally withdraws AAA rating of Germany due to "administrative error." Error is caught and promptly corrected, yet somehow none of the usual HFT latency arbitrage first responders do anything to punish German bonds. Time to recalibrate those sub-1 millisecond headline response time algorithms. If only the S&P would be as prompt in correcting flawed upgrades of housing, CDOs and pretty much the entire ponzi system.
"FRANKFURT (Standard & Poor's) June 11, 2010—Standard & Poor's Ratings Services today said that due to an administrative error, it had incorrectly withdrawn its 'AAA' issue rating on one tranche of the €24 billion 3.75% notes due 2019 issued by the Federal Republic of Germany. The rating was mistakenly withdrawn as the maturity date we had for the notes was incorrect. We have corrected and reinstated the 'AAA' issue rating on the tranche of notes. At the same time, we have corrected the maturity date on the notes, which is Jan. 4, 2019."
Oddly enough, nobody noticed...or better yet, nobody cared.
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if i am not mistaken.. they go thorugh multiple levels of approval...before such ratings are changed...
not sure how an administrative error can happen...maybe they are just sending a message to the Germans?
Yep. Leave the euro we'll cut your rating.
+11
That is 1 for Jachin and one for Boaz, as it is the eleventh today.
I'm sure the administrative error was to let the true rating leak out.
HAHA, OOOPS!
Sounds like maybe a trial balloon..
[meh]
Just like bad ticks are eventually revisited...
world war 3.0 will be the nastiest one...it will be economic war and financial terriorism dwarfing that which is being waged now..... where is my popcorn?
Who you calling a dwarf? :>)
These ratings givers haven't been put in jail yet?
It appears to have been a completely honest bureaucratic snafu."
This part, at least, is basically true. Well, the 'sovereign' bit less so.
Proofreading is a lost art (or is that proof reading ?).
Beta test.....they always beta test.
They like to test us before they do something catastrophic.
Infact, they always test us before they do something catastrophic.
Would that include the flash crash?
Zactly. 'How will people react if we wipe out a few billion doelarrs? Oh look, they won't...do it again!'
Merkel must have breathed up a storm ?
PT BARNUM lives!
I'll start up the new realistic ratings agency. It will be called "CHICKEN LITTLE, BITCHES" and the ratings of all equities will be "GET THE FUCK OUT WHILE YOU STILL HAVE YOUR HEAD ATTACHED TO YOUR SHOULDERS."
The ECB had its own elaborate fat finger a couple of days ago.
This is nothing less than a http://en.wikipedia.org/wiki/Freudian_slip
As a common pun goes, "A Freudian slip is when you mean one thing, but you say your mother."
God I'd love to mess around with a headline response algorithm - just like a kid throwing stuff in the toilet to see what goes down. These things are just begging to be manipulated.
Today the SEC raided what is being described as "a basement full of rogue english majors." SEC staff were stalled for several hours however as they were flummoxed by cleverly worded signs posted on the doors. Video of the sting operation shows Mary Shapiro and two other enforcement officials walking backwards while rubbing their stomachs and patting their heads as they finally entered the building...
You mean someone still listens to Moody's and S&P Ratings?
Just the widows and orphans forced into dumping their retirement savings into this rigged game.
They listen . . . by proxy.