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SEC Emerges From Carbonite Deep Freeze, Sues Egan-Jones

Tyler Durden's picture


Just in case one is wondering what is a greater crime in America: vaporizing $1.5 billion in client money or having the temerity to downgrade the US (twice), JP Morgan and Morgan Stanley, here is the SEC with the answer:


Somewhere Jon Corzine is cackling like a mad cow.

More on Egan-Jones' inhuman crime (and PDF)

Egan-Jones Ratings Co. and Sean Egan Charged with Making Material Misrepresentations to SEC

Washington, D.C., April 24, 2012 — The Securities and Exchange Commission today announced charges against Egan-Jones Ratings Company (EJR) and its owner and president Sean Egan for material misrepresentations and omissions in the company’s July 2008 application to register as a Nationally Recognized Statistical Rating Organization (NRSRO) for issuers of asset-backed securities (ABS) and government securities. EJR and Egan also are charged with material misrepresentations in other submissions furnished to the SEC and violations of record-keeping and conflict-of-interest provisions governing NRSROs.

The Commission issued an order instituting proceedings in which the SEC’s Division of Enforcement alleges that EJR — a credit rating agency based in Haverford, Pa. — submitted an application to register as an NRSRO for issuers of asset-backed and government securities in July 2008. EJR had previously registered with the SEC in 2007 as an NRSRO for financial institutions, insurance companies, and corporate issuers.

The SEC’s Division of Enforcement alleges that in its 2008 application, EJR falsely stated that as of the date of the application it had 150 outstanding ABS issuer ratings and 50 outstanding government issuer ratings. EJR further falsely stated in its 2008 application that it had been issuing credit ratings in the ABS and government categories as a credit rating agency on a continuous basis since 1995. In fact, at the time of its July 2008 application, EJR had not issued — that is, made available on the Internet or through another readily accessible means — any ABS or government issuer ratings, and therefore did not meet the requirements for registration as an NRSRO in these categories. EJR continued to make material misrepresentations regarding its experience rating asset-backed and government securities in subsequent annual certifications furnished to the SEC.

The SEC’s Division of Enforcement also alleges that EJR made other misstatements and omissions in submissions to the SEC by providing inaccurate certifications from clients, failing to disclose that two employees had signed a code of ethics different than the one EJR disclosed, and inaccurately stating that EJR did not know if subscribers were long or short a particular security.

The SEC’s Division of Enforcement further alleges that EJR violated other provisions of Commission rules governing NRSROs. EJR failed to enforce its policies to address conflicts of interest arising from employee ownership of securities, and allowed two analysts to participate in determining credit ratings for issuers whose securities they owned. EJR also failed to make and retain certain required records, including a detailed record of its procedures and methodologies to determine credit ratings and e-mails regarding its determination of credit ratings.

The SEC’s Division of Enforcement alleges that Egan provided inaccurate information that was included in EJR’s applications and annual certifications. He signed the submissions and certified that the information provided in them was “accurate in all significant respects,” when he knew that it was not. Egan also failed to ensure EJR’s compliance with the recordkeeping requirements and conflict-of-interest provisions.

The SEC’s Division of Enforcement alleges that, by the conduct described above, EJR willfully violated Exchange Act Sections 15E(a)(1), 15E(b)(2), 15E(h)(1) and 17(a), and Rules 17g-1(a), 17g-1(b), 17g-1(f), 17g-1(a)(2), 17g-2(a)(6), 17g-2(b)(2), 17g-2(b)(7), and 17g-5(c)(2). The Division of Enforcement further alleges that by the conduct described above, Egan willfully made, or caused EJR to make, material misstatements in its Form NRSRO, and caused or willfully aided, abetted, counseled, commanded, induced or procured EJR’s violations of Sections 15E and 17(a) of the Exchange Act and Rules 17g-1, 17g-2, and 17g-5.

The SEC’s investigation was conducted by Stacy Bogert, Pamela Nolan, Alec Koch, and Yuri Zelinsky. The SEC’s litigation will be led by James Kidney.


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Tue, 04/24/2012 - 14:49 | 2370894 Shizzmoney
Shizzmoney's picture

Well there goes him being on CNBC ever again.

Tue, 04/24/2012 - 14:53 | 2370916 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

This is your government, and it's ending one minute at a time.

Tue, 04/24/2012 - 15:00 | 2370970 Michael
Michael's picture

Just slash the SEC budget by 90%. They don't do anything for American civilians anyway.

Tue, 04/24/2012 - 15:03 | 2370993 DormRoom
DormRoom's picture

if you did that the tranny porn industry would collapse.

Tue, 04/24/2012 - 15:43 | 2371185 nope-1004
nope-1004's picture

This gov't has 2 purposes:

1)  Convict those that don't play by the fake rules and refuse to continue the fraud, lies, and cooked bank stats through the MSM.

2)  Invade, destroy, and occupy those countries that don't sell oil in USD.

The US has become a JOKE.  Full of overweight, lazy, "professional" financial innovative cubicle workers, unproductive and illiterate, whose only means to "get ahead" is through credit.  That is a supreme JOKE.  There is no economy anymore.


Tue, 04/24/2012 - 16:02 | 2371284 Bicycle Repairman
Bicycle Repairman's picture



And just to be sure that everyone gets the point, they sue Egan personally.

Any more questions?

Wed, 04/25/2012 - 06:41 | 2372715 trebuchet
trebuchet's picture

This is SHOCKING!!!



Tue, 04/24/2012 - 17:56 | 2371697 Arnold Ziffel
Arnold Ziffel's picture
Watching porn may shut down part of your brain(MSNBC)

Wed, 04/25/2012 - 12:13 | 2373712 trebuchet
trebuchet's picture


Tue, 04/24/2012 - 15:46 | 2371133 Zero Govt
Zero Govt's picture

Egan-Jones gets prosecuted on "material misrepresentations" (trivialities) while the other Credit Ratings Agencies get zippo on national and international mortgage fraud

the SEC are not only defending fraudsters, showing complete contempt for the regulations but they're also bringing the US's biz reputation into disrepute

Tue, 04/24/2012 - 16:01 | 2371279 Bay of Pigs
Bay of Pigs's picture

Fitch upgrades Ford. LOL...

Tue, 04/24/2012 - 16:33 | 2371368 SDRII
SDRII's picture

Must keep subprime credit flowing

Tue, 04/24/2012 - 16:28 | 2371354 NotApplicable
NotApplicable's picture

Good, as there's never been anything reputable about it.

Tue, 04/24/2012 - 15:07 | 2371008 Hedgetard55
Hedgetard55's picture

I wanted to give you a greenie but your font prevents it.

Tue, 04/24/2012 - 15:18 | 2371077 Hippocratic Oaf
Hippocratic Oaf's picture

Amerika...........fuck yea!

Tue, 04/24/2012 - 15:25 | 2371106 Benjamin Glutton
Benjamin Glutton's picture

It was all good when our fascist government was imposing itself on the rest of the planet.


Now that it has turned attention to you and me it's not so funny anymore.


was over in the 60's.

Tue, 04/24/2012 - 17:58 | 2371702 Havana White
Havana White's picture

"Was over in the 60's."  Indeed. Hijacked on November 22, 1963.

Wed, 04/25/2012 - 12:21 | 2373742 chipshot
chipshot's picture





Tue, 04/24/2012 - 15:05 | 2371000 Waffen
Waffen's picture

Who watches the watchers?

For fucks sake, everywhere I look this world is a fucking upside down joke. Everything I was taught as a child about how our country stands for goodness, honesty, truth and justice was a bunch of rotten maggots.

I have been lied to all my life and I am pissed off on epic levels.

Tue, 04/24/2012 - 15:08 | 2371015 machineh
machineh's picture

At least maggots perform a useful service in the food chain.

More than you can say for the SEC.

Tue, 04/24/2012 - 16:28 | 2371352 NewWorldOrange
NewWorldOrange's picture

The extent of regulatory capture in the U.S. would probably shock most people if they really knew. Patrick Byrne and his team of investigators have looked at this for years and its great reading for anyone wanting to see what really goes on with the SEC or with "regulatory" agencies generally:

"As if often the case, it all begins with Jim Cramer."

Tue, 04/24/2012 - 15:11 | 2371029 SheepDog-One
SheepDog-One's picture

I hear you LC Waffen Im totaly ready to be in total dissent and non compliance of it all even if it kills me! Fuck all this! A lab rat wouldnt tollerate it!

Tue, 04/24/2012 - 16:05 | 2371291 The trend is yo...
The trend is your friend's picture

I wish I had the balls to not pay taxes and tell the GOVERNMENT to go fuck themselves for destroying this country

Tue, 04/24/2012 - 16:30 | 2371359 NewWorldOrange
NewWorldOrange's picture

Cindy Sheehan is on trial right now for just that. Hope the jury nullifies (right...)

Tue, 04/24/2012 - 23:28 | 2372304 jeff montanye
jeff montanye's picture

also check out what has happened to the free interplay of ideas in the groves of academe.

Tue, 04/24/2012 - 20:20 | 2371947 BooMushroom
BooMushroom's picture

Only works if you're a bigwig crony capitalist, or the Secretary of the Treasury. Little guys like you and me are screwed.

Tue, 04/24/2012 - 15:15 | 2371058 Nobody For President
Nobody For President's picture

"I have been lied to all my life and I am pissed off on epic levels."


Welcome to the (fight) club.

Tue, 04/24/2012 - 15:23 | 2371098 blunderdog
blunderdog's picture

You think he's got it bad, consider that poor James Kidney guy.  Sounds like he's a real pisser.

Tue, 04/24/2012 - 23:32 | 2372321 jeff montanye
jeff montanye's picture

too bad it's in name only.  there sure are a lot of toxins in the financial world that need some straining out and flushing down the toilet (yes jon corzine, i'm talking to you).

Tue, 04/24/2012 - 15:23 | 2371099 jus_lite_reading
jus_lite_reading's picture

>>"...and I am pissed off on epic levels."


You and me both... good thing I do yoga

Tue, 04/24/2012 - 16:21 | 2371332 WonderDawg
WonderDawg's picture

Kickboxing classes work, too.

Tue, 04/24/2012 - 16:30 | 2371358 NotApplicable
NotApplicable's picture

Home lobotomy kit, FTW!

Tue, 04/24/2012 - 16:36 | 2371388 NewWorldOrange
NewWorldOrange's picture

Where's Nurse Ratchet when you need her? This country is a cuckoo's nest.

Tue, 04/24/2012 - 16:26 | 2371350 5880
5880's picture

yuri b zelinsky of tacoma md?

I love google

Tue, 04/24/2012 - 14:50 | 2370897 fightthepower
fightthepower's picture

Fuck you Bernanke!

Tue, 04/24/2012 - 14:51 | 2370906 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

fuck you mary shapiro

Tue, 04/24/2012 - 15:34 | 2371153 BLACK_DOG
BLACK_DOG's picture

she's a dyke? sorry i ment "!" 

Tue, 04/24/2012 - 18:40 | 2371767 supafuckinmingster
supafuckinmingster's picture

Mary Shapiro, Ben Bernanke, Alan Greenspan, Janet Yellen, Donald Kohn, Tim all leads to Rothschilds...Morgans...Chases'....wake up are a vassal of Judaism. And not the Chomsky, or Jon Stewart no......I'm talking the Yitzhat Shamir type.

Tue, 04/24/2012 - 14:50 | 2370902 Dr. Engali
Dr. Engali's picture

The world remains silent while the honest players are slaughtered and the criminals are rewarded. We're fucked.

Tue, 04/24/2012 - 14:56 | 2370937 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Now the SEC can go back to watching tranny porn, thank goodness!

Tue, 04/24/2012 - 15:05 | 2371002 UP Forester
UP Forester's picture

The SEC was booted off of the midget tranny porn sites for being too twisted.

That's why they have to look like they're doing something, for a change.

Tue, 04/24/2012 - 15:24 | 2371101 ragequit
ragequit's picture

tranny porn stars need to make money too.  you people are so cruel.

Tue, 04/24/2012 - 15:02 | 2370980 LongSoupLine
LongSoupLine's picture

I am simply and utterly disgusted.

I honestly fear for the future of ZH at this point.

Tue, 04/24/2012 - 15:05 | 2371001 HarryM
HarryM's picture

I'm pretty sure anyone who visits this site has their name added to a list

Tue, 04/24/2012 - 15:10 | 2371025 Dr. Engali
Dr. Engali's picture

I'm pretty sure you can say that about this site and a few other's. I keep waiting for the day when I go to the Hedge for news and I see an "This page is no longer available" message  on the screen. 

Tue, 04/24/2012 - 15:25 | 2371105 blunderdog
blunderdog's picture

Better for TPTB to leave the site alone.  The fringies that hang here would be more motivated to go do stuff if they weren't all online posting their daily rants.

Tue, 04/24/2012 - 16:38 | 2371404 NotApplicable
NotApplicable's picture

Oh, they'll leave ZH alone for the time being. For them, it's a free honeypot to observe. It will only be taken out if it's popularity surpasses HuffPo (or some similar site).

My barometer is watching the visibility of (and At some point, Krugman will lose his last follower to them, and MSM ridicule will no longer be effective enough to keep the herd away. Then they'll start attacking it in a last ditch effort to scare the herd away, lest they be tainted as a racist (because somehow freedom is really all about slavery).

Of course, by then we'll all be facebooking from the comfort of our FEMA camp, fully plugged into the Matrix.

Tue, 04/24/2012 - 17:02 | 2371520 blunderdog
blunderdog's picture

    It will only be taken out if it's popularity surpasses HuffPo (or some similar site).

Yeah, right.

You're suggesting that TPTB that are secretly running everything will shut down a great source of intelligence after it attracts a large enough group of

Guess you're not perceiving the incredibly stupid part of that prediction, huh?

Tue, 04/24/2012 - 22:22 | 2371997 cbxer55
cbxer55's picture

Funny you mention that. I work for the government, and visit this site during my lunch break, from a work computer. It has not been banned or black-balled yet.

 I am not a desk rider. I am a Sheet Metal Mechanic, and I make a lot less than you probably think I do. My work station is inside fuel tanks on communications aircraft.

Luch is over, gotta go.



Tue, 04/24/2012 - 15:07 | 2371007 Waffen
Waffen's picture

Doubtful, what happens when you remove the steam valves?

Tue, 04/24/2012 - 15:36 | 2371169 Dr. Engali
Dr. Engali's picture

When it comes time for TPTB to put the hammer down, they aren't going to be worried about any steam valves. They will shut it all down.

Tue, 04/24/2012 - 15:45 | 2371222 Waffen
Waffen's picture

Indeed, at that time even our beloved ZH will be low on our priority list.

Tue, 04/24/2012 - 15:12 | 2371036 SheepDog-One
SheepDog-One's picture

Yep thats what really gets me, its obvious there are NO watchdogs out there at all like we're trained to believe there are thru James Bond or Batman espionage stories. They dont exist! 

Tue, 04/24/2012 - 16:40 | 2371414 NewWorldOrange
NewWorldOrange's picture

We live in the fucking Matrix. Too bad it's futile to try to wake up the folks in the other pods. Maybe when their food supply is cut off...

Tue, 04/24/2012 - 21:38 | 2372061 Waffen
Waffen's picture

The majority of people will only wake up when a boot I literally stomping them in the face.

Tue, 04/24/2012 - 16:04 | 2371264 earleflorida
Tue, 04/24/2012 - 14:52 | 2370907 EscapeKey
EscapeKey's picture

First amendment only counts if you're a connected billionaire.

Didn't the Argentines fine journalists who dared suggest that inflation rates were about those officially stated? The US is ZILCH better than that banana republic.

Tue, 04/24/2012 - 14:51 | 2370911 BLACK_DOG
BLACK_DOG's picture

shoot the messenger. good name for a rock band!

Tue, 04/24/2012 - 16:42 | 2371424 NewWorldOrange
NewWorldOrange's picture

It already is. So is Don't Shoot the Messenger.

Tue, 04/24/2012 - 14:51 | 2370912 fireangelmaverick
fireangelmaverick's picture


Tue, 04/24/2012 - 17:22 | 2371617 AcidRastaHead
AcidRastaHead's picture

Except the Kramers came to their senses and learned valuable lessons about themselves.  Then they searched for porn on DARPA.

Tue, 04/24/2012 - 14:52 | 2370918 docj
docj's picture

Well, if there was ever any doubt we now know the SEC's priorities (other than finding the fastest possible internet connection for surfing pron, that is) clear as day.

The Ponzi must be maintained - period. Full stop. And any who dare speak ill of the Ponzi or any of her main players must be immediately branded a heretic and burned at the stake.

But they're looking out for us. Just ask them, they'll tell you.

Tue, 04/24/2012 - 14:52 | 2370919 Vincent Vega
Vincent Vega's picture

Ve haf vays of dealing vith peeple such az yourself Mr Egan.

Tue, 04/24/2012 - 15:07 | 2371013 UP Forester
UP Forester's picture

Ve haf Sharks vit freekin' lasers on their heads!

Tue, 04/24/2012 - 15:12 | 2371039 BLACK_DOG
BLACK_DOG's picture

i like your photo!

Tue, 04/24/2012 - 15:14 | 2371052 Vincent Vega
Vincent Vega's picture

You ain't half bad yourself, baby.

Tue, 04/24/2012 - 15:20 | 2371089 Burr's 2nd Shot
Burr's 2nd Shot's picture

Was ist los, zees paperz are not in order

Tue, 04/24/2012 - 14:53 | 2370924 Stoploss
Stoploss's picture

One down..

Tue, 04/24/2012 - 14:53 | 2370925 Jonas Parker
Jonas Parker's picture

It's not nice to piss off TPTB...

Tue, 04/24/2012 - 14:53 | 2370926 Scalaris
Scalaris's picture

Stupid fucking mirrors with their accurate depictions.

Tue, 04/24/2012 - 15:08 | 2371014 GeneMarchbanks
GeneMarchbanks's picture

To be fair, he was all, like, downgrading people all the time. Asswipe.

Tue, 04/24/2012 - 19:19 | 2371845 logicalman
logicalman's picture

mirrors aren't accurate, they are latterally inverted.

Tue, 04/24/2012 - 14:54 | 2370932 Godisanhftbot
Godisanhftbot's picture

The SEC and Mr. Jones, they got a thing, going on.

Tue, 04/24/2012 - 14:55 | 2370933 css1971
css1971's picture

Of course they do.

Tue, 04/24/2012 - 14:56 | 2370944 the not so migh...
the not so mighty maximiza's picture

Counter sue for malicious prosecution

Tue, 04/24/2012 - 16:42 | 2371425 NotApplicable
NotApplicable's picture

That only works when justice was actually served.

Remember, it's a criminal justice system.

Tue, 04/24/2012 - 14:57 | 2370945 ziggy59
ziggy59's picture

It's worse to steal a coke worth a buck from McDs-. A felony...Than to vaporize 1500 million dollars..

Tue, 04/24/2012 - 14:57 | 2370946 Evil Bugeyes
Evil Bugeyes's picture

They did nothing about Madoff or Corzine. But when a ratings agency dares to downgrade the US gov., they leap into action!

Every day, this country is becoming more and more like Argentina.

Tue, 04/24/2012 - 15:13 | 2371047 Bastiat
Bastiat's picture

. . . and they did NOTHING about the bogus AAA ratings on CDO junk which brought the system down in 2008.

Tue, 04/24/2012 - 15:31 | 2371142 Shizzmoney
Shizzmoney's picture

Every day, this country is becoming more and more like Argentina.

Minus the 100x's more attractive, educated, and nicer, women.



Tue, 04/24/2012 - 16:11 | 2371313 LowProfile
LowProfile's picture

Can't vote you up if the first line starts with italics.

Tue, 04/24/2012 - 16:09 | 2371303 AlaricBalth
AlaricBalth's picture

Worse than Argentina. At least the Argentinian people had the balls to protest by means of a "cacerolazo" when the powers that be were trying to screw them. The masses of the U.S. are so placated by bread and circuses and drugged into submission, that all they care about is who wins American Idol and when they can buy the new Apple IPhone 6.66.

Tue, 04/24/2012 - 17:10 | 2371562 Ripped Chunk
Ripped Chunk's picture

Corzine should be keel hauled. Instead he will get a fat consulting position.

Tue, 04/24/2012 - 14:57 | 2370947 jcaz
jcaz's picture

Nice- they'll give him the death penalty, ban him from the biz.....  Hey, just like me!

Pathetic that people can't see this sham for what it is-  kill anyone who challenges the Evil Empire......

Tue, 04/24/2012 - 23:43 | 2372344 jeff montanye
jeff montanye's picture

just something i noticed:  even presidents are kept in line.  the only two presidential executive orders that were completely overruled by the courts?  truman's trying to seize the steel mills during the korean war and clinton's trying to keep permanent strike breakers from being hired by government contractors.  see a pattern here?  

so it's not really about abortion, drugs, gays, racism, school prayer, guns, .....?    hmmm.

Tue, 04/24/2012 - 14:57 | 2370949 Village Smithy
Village Smithy's picture

The SEC’s investigation was conducted by Stacy Bogert, Pamela Nolan, Alec Koch, and Yuri Zelinsky. The SEC’s litigation will be led by James Kidney.Keep an eye on this gang, they'll soon be moving up in the world.

Tue, 04/24/2012 - 15:12 | 2371043 UP Forester
UP Forester's picture

Good thing they gave the names.

Hell, I thought the investigators were Boss Hogg, Laurel and Hardy, Jenna Jameson and the Keystone Kops, and the litigation to be led by Tamany Hall.

But maybe that's just me....

Tue, 04/24/2012 - 14:57 | 2370951 jbc77
jbc77's picture

What a fucking joke. Corzine walks and the only ratings agency worth a dam gets screwed by the administration because of an honest downgrade?? Welcome to the Twilight Zone. This is the kind of stuff that makes you actually root for the downfall of these ass clowns.

Tue, 04/24/2012 - 14:58 | 2370959 buzzsaw99
buzzsaw99's picture

Typical fascist state tactics.

Tue, 04/24/2012 - 15:25 | 2371104 G_T_A_44
G_T_A_44's picture



“A nation can survive its fools, and even the ambitious. But it cannot survive treason from within. An enemy at the gates is less formidable, for he is known and carries his banner openly. But the traitor moves amongst those within the gate freely, his sly whispers rustling through all the alleys, heard in the very halls of government itself. For the traitor appears not a traitor; he speaks in accents familiar to his victims, and he wears their face and their arguments, he appeals to the baseness that lies deep in the hearts of all men. He rots the soul of a nation, he works secretly and unknown in the night to undermine the pillars of the city, he infects the body politic so that it can no longer resist. A murderer is less to fear.”
? Marcus Tullius Cicero

Tue, 04/24/2012 - 16:07 | 2371304 roadhazard
roadhazard's picture

AmeriKa, fuck yeah.

Tue, 04/24/2012 - 22:55 | 2372230 SubjectivObject
SubjectivObject's picture


Tue, 04/24/2012 - 14:59 | 2370961 Dick Darlington
Dick Darlington's picture

And the other one is on it's knees begging for mercy:


S&P Says First Quarter U.S. Public Finance Ratings Stabilized -DJ


Tue, 04/24/2012 - 15:13 | 2371045 SheepDog-One
SheepDog-One's picture

The Titanic also 'stabilized' on the bottom of the Atlantic.

Tue, 04/24/2012 - 15:43 | 2371215 Dick Darlington
Dick Darlington's picture

And the violins played until the bitter end.

Tue, 04/24/2012 - 14:59 | 2370963 Spaceman Spiff
Spaceman Spiff's picture

When did the investigation start? Before or after the first downgrade?

Tue, 04/24/2012 - 15:00 | 2370967 tu-ne-cede-malis
tu-ne-cede-malis's picture

Egan should market his firm as the anti-NRSRO.  That'll give him even more credibility. 

Tue, 04/24/2012 - 16:24 | 2371346 trembo slice
trembo slice's picture

sweet name and pic

Tue, 04/24/2012 - 15:01 | 2370976 carbonmutant
carbonmutant's picture

Mary's doing the job the WH hired her to do...

Tue, 04/24/2012 - 15:02 | 2370981 hmmmstrange
hmmmstrange's picture

What are the consequences if Egan-Jones just refuses to rate USA anymore?

Tue, 04/24/2012 - 15:03 | 2370988 tony bonn
tony bonn's picture

even if egan jones were guilty of this charge - although it has all of the earmarks of a kangaroo court proceding - it proves that the wall street banksters and bush crime syndicate backing corzine engineered this distraction...

this charade is a perfect example of motives and priorities of the agency run by porn peddling criminal mary schapiro....

Tue, 04/24/2012 - 17:30 | 2371645 earnyermoney
earnyermoney's picture

it proves that the wall street banksters and Obama crime syndicate backing corzine engineered this distraction...


Fixed it for you.

Tue, 04/24/2012 - 15:03 | 2370992 midgetrannyporn
midgetrannyporn's picture

Meanwhile lying ass Moody's et al get a free pass. LMAO!!!


Orwell was right!

Tue, 04/24/2012 - 15:04 | 2370997 MrBoompi
MrBoompi's picture

The douchebags at the SEC either sat on this information for 4 years or just looked at the applications after the US was downgraded by them.  Either way, there is nothing good you can say about these people.  They protect criminals, but only the ones who agree to "play by the rules".

Tue, 04/24/2012 - 15:15 | 2371063 Bastiat
Bastiat's picture

They protect criminals, but only the ones who agree to "play by the rules".

"make" the rules.

Tue, 04/24/2012 - 15:04 | 2370999 Dr. Engali
Dr. Engali's picture

What we need is more regulatory agencies doing the people's work. After all we have to keep the government's borrowing cost down and we don't want any company with integrety getting in our way.  Next up demonization in the press.


Tue, 04/24/2012 - 15:05 | 2371003 jmcadg
jmcadg's picture

Stupid Erroneous Cunts

Tue, 04/24/2012 - 15:13 | 2371049 machineh
machineh's picture

Safeguarding Egregious Criminality

Tue, 04/24/2012 - 15:07 | 2371011 azzhatter
azzhatter's picture

What a Fucking Joke this country has become. If there were "material misrepresentations" on the application filed in 2008, why didn't Barney Fife and the SEC catch them at the time? The SEC is a material misrepresentation

Tue, 04/24/2012 - 15:12 | 2371033 midgetrannyporn
midgetrannyporn's picture

The DOJ and SEC take orders from the squid.

Tue, 04/24/2012 - 21:27 | 2372043 CoolBeans
CoolBeans's picture

Because the SEC does not routinely examine applications for registration for compliance -- often a firm's filing will look fine and pass muster but it isn't until an regulatory audit that the firm is found to not be compliant. 

Compliance is "20-20 hindsight' many times - often firms don't know that they're doing anything wrong (and they aren't hurting anyone or causing monetary loss but the SEC might fine them $25,000 or more for administrative failures).  Repeated administrative failures can put a firm in big trouble w/the SEC.  But again...let's compare administrative failures with fraud (Corzine...but I would love to have a week to go through the files on the years of B. Madoff audits, wouldn't you?) 

Tue, 04/24/2012 - 15:13 | 2371046 weenus
weenus's picture

Instead of having a conspiracy dogpile, the question to ask is did Egan Jones misrepresent their having rated ABS?   They are accused of saying they rated stuff when the SEC says they didn't. 

This shouldn't be too hard to find out about. 

Did they do it, but not post it publicly?  

Is the SEC splitting hairs?   

More intelligent even handed discussion, less hysteria pls...

That said, holy sheeet

Tue, 04/24/2012 - 15:23 | 2371096 Spaceman Spiff
Spaceman Spiff's picture

I think you are misreading the outrage.   Most here want them all prosecuted...   It's just that there are bigger fish to fry (much bigger, oink emitting, cash co-mingling/bundling fish) and they started with one of the truth tellers.   Hell, did the other ratings agencies get any punishment?   What type of system is this?

Tue, 04/24/2012 - 15:28 | 2371121 dirtbagger
dirtbagger's picture

EJ is probably no dirtier than the rest of the rating agencies.   I guess there is a difference between having a coming to Jesus moment and "doing God's work.

Tue, 04/24/2012 - 15:31 | 2371141 dirtbagger
dirtbagger's picture

EJ is probably no dirtier than the other rating agencies.  Guess there must be a difference between a coming to Jesus moment and "doing God's work".

Tue, 04/24/2012 - 15:14 | 2371050 dwdollar
dwdollar's picture

Well, at least they put their dicks away long enough to file some bogus charges... Progress?

Tue, 04/24/2012 - 15:16 | 2371068 machineh
machineh's picture

Or dildos, in the case of the female, eunuch and trannie cohorts of the staff.

Tue, 04/24/2012 - 15:17 | 2371074 Bastiat
Bastiat's picture

"Alec Koch"   say it slow with a US southern accent.

Tue, 04/24/2012 - 15:16 | 2371064 AlaricBalth
AlaricBalth's picture

Where is the investigation concerning Moody's and S&P's AAA credit ratings on the billions of dollars of sub-prime mortgage CDO's? Dead and buried that's where. This is outrageous.

Tue, 04/24/2012 - 16:48 | 2371450 NotApplicable
NotApplicable's picture

Sorry, but irrational exuberence is not a crime!

Tue, 04/24/2012 - 15:16 | 2371067 Chippewa Partners
Chippewa Partners's picture

Can I send gold or dollars to help the cause?   

Tue, 04/24/2012 - 15:19 | 2371078 weenus
weenus's picture

I just looked at the actual court papers.   EJR had analysts rating shit that they owned.  

That's dirty. 

Yes, Moody's and S&P suck cock in hell, but if EJR was perpetrating blatant confilcts of interest, fuck him.

Tue, 04/24/2012 - 15:34 | 2371158 buzzsaw99
buzzsaw99's picture

Everyone is dirty. imo EJ isn't being prosecuted for the lying and cheating they did but rather for the toes they stepped on. If they were friends of the squid (like moody's or facebook) they would be able to pay a small fine while admitting no guilt. Play ball or go to jail.

Tue, 04/24/2012 - 16:49 | 2371455 NotApplicable
NotApplicable's picture

Besides, if they weren't dirty, they'd never been able to become a player.

Question is: why did they do it?

Tue, 04/24/2012 - 18:38 | 2371764 EvlTheCat
EvlTheCat's picture

Nice quote:

"If Federal Reserve Chairman Ben S. Bernanke were to flood the markets with a third round of liquidity - another bond-buying program known as QE3 for quantitative easing - "that would definitely trigger a review" of the U.S. rating, Hassiepen said. "And the review, I think, would not be favorable," he told the audience of investors and Fed-watchers at the conference."

Derivatives? QE3?,postorder,desc.html

Tue, 04/24/2012 - 15:19 | 2371079 QQQBall
QQQBall's picture

Tyler,Nie linkage with the mad-cow post.


"Somewhere Jon Corzine is cackling like a mad cow."

Tue, 04/24/2012 - 15:19 | 2371083 Teamtc321
Teamtc321's picture

Bankster giant Bank of America has joined the effort to take down the Second Amendment and deny Americans the right to own and use firearms.

Kelly McMillan, the CEO of McMillan Fiberglass Stocks, McMillan Group International, and McMillan Firearms Manufacturing, recently wrote on his Facebook page that Bank of America has refused to do business with his companies because they sell firearms. Bank of America admitted its decision was political. McMillan’s response was to immediately stop doing business with Bank of America.

Tue, 04/24/2012 - 19:33 | 2371874 logicalman
logicalman's picture

EVERYONE should stop doing business with BoA


Tue, 04/24/2012 - 21:52 | 2372082 Captain Benny
Captain Benny's picture

Or better yet.  Stop doing business with any banks.  Bring the system down, get your assets out of fiat currency and paper claims/stock certificates/derivatives/etc.  You're part of the problem if you "invest" in the ponzi.

Wed, 04/25/2012 - 11:04 | 2373427 CoolBeans
CoolBeans's picture

Everyone who appreciates the right to bear arms should stop doing any kind of biz with BofA and when you cancel your account(s) be sure to let 'em know why.  Please email friends and family - I'm sharing the McMillan Group story.  Everyone needs to know this - and of course it was not widely reported.

Tue, 04/24/2012 - 15:20 | 2371087 SemperFord
SemperFord's picture

Would be awesome if they Downgraded the US quick and in a mother F ing hurry!!!

Tue, 04/24/2012 - 15:21 | 2371093 nick howdy
nick howdy's picture

What crap....The only half-ass legitimate rating agency..If you call the Ponz what it is, that's wrong! , it's illegal!, and you will be persecuted...

If you're in "the game" you can steal a billion or so and get away with it..That's perfectly OK....Besides it "vanished" "disappeared".. No need for the SEC to look into it...Isn't that right Jonny Boy..You fucker...Keep bundling for Obama.. 

Tue, 04/24/2012 - 15:29 | 2371128 resurger
resurger's picture

Egan-Jones are "Terrorists"

& I support them

Tue, 04/24/2012 - 17:08 | 2371554 nick howdy
nick howdy's picture


Tue, 04/24/2012 - 15:31 | 2371143 Platinum_Investor
Platinum_Investor's picture

This is just not right.  How much worse does it get?

Tue, 04/24/2012 - 15:35 | 2371162 junkyardjack
junkyardjack's picture

How is their investigation of MF Global going?....

Wed, 04/25/2012 - 03:16 | 2372589 surfer433
surfer433's picture

What investigation?



Tue, 04/24/2012 - 15:34 | 2371154 junkyardjack
junkyardjack's picture

No one likes a tattletale, if Egan didn't have anything nice to say about the fraud market then they shouldn't have said anything at all...

Tue, 04/24/2012 - 15:40 | 2371199 carbonmutant
carbonmutant's picture

JNPR going berzerk...

Tue, 04/24/2012 - 15:59 | 2371272 blu
blu's picture

thehell ... did trading actually halt on the rise? That's epic.

Tue, 04/24/2012 - 15:51 | 2371246 Everybodys All ...
Everybodys All American's picture

What is happening to Sean Egan of Egan-Jones can now sadly happen to any of us. This government is out of control. The SEC is just another political tool. This issue with a ratings agency somehow is more important than MFGlobal losing 1.5 billion and zeroing out client accounts? No indication whatsoever of any wrong doing by Corzine? I mean come on this is not even funny anymore. This reeks of evil corruption.

Tue, 04/24/2012 - 15:54 | 2371257 blu
blu's picture

failing to disclose that two employees had signed a code of ethics different than the one EJR disclosed

WTF. That did it right there. Signing a code of ethics -- of any kind -- will get you a room in Gitmo.

Tue, 04/24/2012 - 15:58 | 2371270 williambanzai7
williambanzai7's picture


Tue, 04/24/2012 - 16:14 | 2371318 earleflorida
earleflorida's picture

Indeed, onto the top of the financial terrorist list do you go,... Mr. Egan. How dare one speak before his turn without oligarchy supervision!

Tue, 04/24/2012 - 16:20 | 2371327 jmcadg
jmcadg's picture

No time or resources to spend on MFG.
Now we know why. Fuck the SEC

Tue, 04/24/2012 - 16:24 | 2371343 f16hoser
f16hoser's picture


SEC is a fucking joke. Of all the potential targets on Wall Street, they pick on the only "honest" ratings agency in the US. You can't make this shit up!

Tue, 04/24/2012 - 16:36 | 2371381 Bob Bercy
Bob Bercy's picture

It things like this that remind us how deeply, deeply corrupt the US establishment is. And they want to fine Walmart for bribing a few Mexicans! Jesus, the hypocrisy is really difficult to swallow.

Tue, 04/24/2012 - 21:21 | 2372034 CoolBeans
CoolBeans's picture

True that.  Hmmmm, I wonder how much business is done in Mexico based upon greasing a few palms?  I would venture to guess that it is considered "business as usual" and Walmart was simply fitting into the local culture.  I don't care about this because we don't regulate Mexico - butt out U.S. and let Mexico deal with it if they have an issue.  In the meantime, my kids don't appreciate any stock drops.

Tue, 04/24/2012 - 16:37 | 2371396 Escapeclaws
Escapeclaws's picture

Don't worry, interest in Corzine will dry up soon. Nothing keeps American's attention for very long. Fukashima, GOM oil spill, etc etc--who is interested in that stuff now?

Tue, 04/24/2012 - 16:52 | 2371463 NotApplicable
NotApplicable's picture

Don't worry, all of that will come back into the light... the instant it's too late to do anything about it.

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