SEC Report On Credit Raters Finds Leaks And Conflicts Of Interest

Tyler Durden's picture

In what is perhaps the biggest face-palm moment of the day, the SEC's summary report on credit raters found 22 pages worth of supervisory failure and conflicts of interest concerns at each and every one of our NRSROs. However, perhaps the most notable headline, via Bloomberg was potentially much more litigiously serious:

*SEC SAYS `LARGE' CREDIT RATER APPEARED TO LEAK PENDING RATING

*SEC DECLINED TO IDENTIFY WHICH RATER MAY HAVE LEAKED DECISION

Now who could it be?

Further headlines, via Bloomberg,  include:

*SEC STAFF FOUND CONCERNS AT EACH OF THE NRSROS

 

The Staff is concerned that the apparently unnecessary delay in release and publication of some credit rating actions increases the possibility that pending credit rating actions will be inappropriately disseminated.

 

*SEC STAFF FOUND FAILURE IN MAKING TIMELY/ACCURATE DISCLOSURES

 

*SEC STAFF CITES SOME FAILURE TO MANAGE CONFLICTS OF INTEREST

 

But have ni fear, this will not continue:

 

*SEC DECLINED TO NAME NAMES IN CREDIT RATERS REPORT FOR FAIRNESS

 

*SEC STAFF EXPECTS CREDIT RATINGS AGENCIES TO ADDRESS CONCERNS

 

2011 Nrsro Section15e Examinations Summary Report

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
SheepDog-One's picture

So the White House made a phone call to the SEC and said 'Take a break from your gay midget porn for a minute and put a muzzle on S&P'.

gmrpeabody's picture

Oh.., and Mary..., also make sure to have more donuts delivered, would you Dear? Thanks Hun.

Nascent_Variable's picture

The SEC's exhaustive investigation determined that some unspecified agencies did some unspecified things wrong.  They're not going to tell anyone what happened or who did it, but they expect the agencies to try harder next time, or else they may have to release another report that gives no details or actual information.  And of course, the taxpayers get to foot the bill.

They should stick to surfing porn.

monmick's picture

Yep. You are either with us, or against us....

No One's picture

Wrong. You are either with us, or suicided.

Peter K's picture

And WHO could have this info been leaked to? :) Mr Beck, please pick up the red phone:))))))))))))))))))))

buzzsaw99's picture

small named co-conspirators and large un-named ones too. ;)

slewie the pi-rat's picture

L0L!!!  yep!

these "companies" were the keystonez to selling the RE financing frauds to the "innocents abroad" and now we see that they "may" be involved in leaking info of "sensitivity" >>> the "market" to >>> "insiders"? 

OMG!!!

knukles's picture

But but but....
How can it be wrong to leak inside information to insiders who by definition were already as insiders privy to the inside information?

See, there cannot be a conviction of anybody within the circle when defined as a tautology.
Brilliant.
Fucking Brilliant.

Blorf's picture

Must Punish Anyone Who Downgrades America's Superbonds! Keep buying the 30 year under 3%! All is well!

fdisk's picture

Bullish for Market.

The Fonz...before shark jump's picture

time for S&P to pay for its insolence....I bet you their whole board of directors gets audited by the IRS

 

First comes Fraud

 

then comes Force

knukles's picture

And then we get to the great anal sex!
S'all Greek to me.

(maniacal laughter)

Mongo's picture

Spank & Prank Bitchez!

doomandbloom's picture

They will soon try to have a common 'MA+++' rating on all banks....
(MA= move along)

fuu's picture

They have some pretty skilled 1 handed typists at SEC.

Smiddywesson's picture

Leaks at the credit agencies?  At least our economic data and Fed announcements aren't leaked, that would reduce market confidence.

/sarc

monopoly's picture

Nooo!. I cannot believe this. Tyler, you have gone to far. This is America, the land of the free, the brave, the insolvent.

tawdzilla's picture

"Now who could it be?"

rhymes with slandered and whores

Belarus's picture

Everything is leaked within the coachroach hotel community. Like this is news to anyone. Everyday, the whole thing is massaged and manipulated on leaking inter connected  information only privy to the rulers of the world. Seriously. Goldman and JP Morgan and HSBC are loading up on physical metals right now: I know, it's been leaked. They indeed steal by inflation then by deflation then by printing.

This whole deflationary patch is so predicatable without QE. And you wanna bet Goldman knows when and how Ben's gonna do the next move, along with JP Morgan, as they furiously stock up on silver before the next QE? 

Thiis whole thing in unfolding to the script.  

mayhem_korner's picture

 

 

Who could it be...

(Arnold Horshack, sitting at desk with hand fully extended up) Oh! Oh! Oh! Oh! Oh! Oh!

Outlaw Of The Wasteland's picture

Next crazy thing you'll be telling me is that reuters, the ft, wsj, cnbc, barron's, motley fool, cramer and bloomberg are in on the act, too.

That's just crazy talk.

Josh Randall's picture

Wait until Germany gets downgraded for backing this crummy bailout deal part Inifinity -- then you will probably see stooge type rating agencies pop-up that will rubber stamp all Govt debt AAA+++ that was just downgraded by the old guard agencies.

Outlaw Of The Wasteland's picture

The date and time of that headline has been scripted ahead of time and is well known to the usual suspects.

Will be used to make billions.  Rinse, wash, repeat.

PTRio's picture

The SEC will not name the agency responsible for leaking rating information out of "fairness"? Fairness to whom? Those guilty of felonies? Right, we must be fair to felons. After all, isn't this the National Be Fair To Banking Felons Decade? After all, they run these big banks and if we upset them they might charge us for accessing our money we lend them at zero interest. Oh? They already do? Never mind.

The good news is the SEC only found twenty two pages of "supervisory failure and conflicts of interest". Heck, that much happens at pretty much every Wall Street firm every hour of every working day.

hambone's picture

No one would find this believable if it was written in a cheap dime store novel...only in our fantazy land where the most ludicrous reality is made up on the spot by the "winners" and communicated by the "talking heads" to a mindless people could this occur.

Still, you gotta believe the authors of "reality" get a pretty good laugh when they come up with some of this stuff...I feel like we're living the real world equivelant of "Giligans Island" and the "writers" are having a good laugh at our expense!

aerial view's picture

Well surprise, surprise: credit raters charged with "leaks and conflicts of interest". Companies whose sole job is to provide independent analysis and accurate assessment of financial health cannot be trusted or relied on but can be bought and sold if the money is right. They failed miserably yet they are still in business and no one has been heavily fined or sent to prison. Don't you just love this country (if you're a powerful and wealthy crook)?!

Rainman's picture

Financial criminal amnesty marches on ! Now let's move on to wrist slaps for the Big 4 accounting firms.

knukles's picture

And if we don't run out of time, maybe we'll get to the banks.

junkyardjack's picture

It was probably leaked to Congress, it'll be another year where their portfolio vastly outstrips the market. Smartest guys in the room

undercover brother's picture

Nothing to see here.  Move along now sheeple....

snowball777's picture

Moody's: Hello, sir! Yes, we're sorry to disturb you during bathtime, but we thought you might like to know...

RSloane's picture

 I honestly don't know whether to laugh or cry, or just go have another glass of indifferent sherry.

knukles's picture

My wife is indifferent, too.

fyrebird's picture

The report on the leaks was leaked to the leakee by the SEC who is now doing the CYA with the FBI. BYOB.

And the world was saved from itself!

Unicorns will be shitting skittles again but beyond here there be monsters.

knukles's picture

Could it be the Church Lady?

bid the soldiers shoot's picture

Shocked, shocked etc. Part 987,650

nyse's picture

Surprise! /sarc.

Joebloinvestor's picture

Considering the administration argued for days about the downgrade, I find the report self serving.

Like the SEC isn't involved in shenanigans.

I call this report "deflection".