S&P Board Fires CEO For Telling The Truth, To Be Replaced With COO Of Citibank

Tyler Durden's picture

Following years of pandering to client demands, and assigning trillions of dollars in fixed income securities with whatever rating money bought (among other things, a factor to the credit bubble and its subsequent implosion) S&P finally tried to do the right thing and tell the truth. However in this case it picked if not the worst, then certainly the most hypocriticial credit in the world to expose - the US itself. Sure enough two weeks after the downgrade, someone made the phone call and the CEO Deven Sharma is no more. As for the kick square in the gonads: Sherma will be replaced with the COO of...you know it... the bank which demanded tens of billions in secret Fed bailout loans itself, Citibank, and whose existence is inextricably tied to America not seeing any more downgrades ever again.

As the FT reports, "The McGraw-Hill board made the decision to replace Mr Sharma at a meeting on Monday, where it also discussed an ongoing strategic review." Alas, this is nothing but a case study of modern corporate reality in America: if you are not with the status quo, you are against it, and you are promptly booted out of it: anyone who does not share the visions of one glorious future built on ponzi schemes, houses of cards, and games of three card monte, will be promptly suicided, either physically or professionally.

We expect that this flagrant example of how the powers that be will deal with any dissenters will instill the fear of god in anyone at either Moodys (or the French sycphants from Fitch) and nobody will ever again menton the words "US" and "downgrade" in the same sentence.

From the FT:

Deven Sharma is stepping down as president of Standard & Poor’s only weeks after the rating agency issued an unprecedented downgrade of the credit of the US, according to people familiar with the matter.

 

Mr Sharma will remain as an adviser to S&P’s owner, McGraw-Hill, for four months and leave the company at the end of the year, they said.

 

Mr Sharma will be replaced as S&P president by Douglas Peterson, chief operating officer of Citibank, the banking unit of Citigroup, they said.

As for the official story:

People close to the company said the search for Mr Sharma’s replacement has been going on for six months, and was triggered by the split of its data, pricing and analytics business from its ratings business. The creation of that new group, McGraw-Hill Financial, reduced the scope of Mr Sharma’s oversight, they said.

So let us get this straight: in America when you dare to tell the truth, your career is over, while if you are a corrupt, lying, incompetent tax evader you not only get to be Treasury Secretary but likely will be on for life as long as you do the one duty you are entrusted with: pander to the interests of the Too Big To Fail financial institutions

We should be speechless but at this point we are well beyond the point of even caring.

The only question left in this entire farce is how long before S&P issues the following upgrade of the US:

"Great service, AAA+++ rating, immediate payment, would do business again!!!"

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Nevermind's picture

Career risk takes on new meaning. 

km4's picture

The Wall St ponzi economy is worse than Muammar Gaddafi i.e. can't get rid of them fast enough !

Pladizow's picture

Add this to the long list of reasons to own gold and silver.

FUCK: WALL STREET, WASHINGTON AND THE BANKS!

Missiondweller's picture

Agreed. Until the system collapses and is rebooted I'm not owning paper investments.

phyuckyiu's picture

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redpill's picture

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TruthInSunshine's picture

 

 

Oliver Stone or Quentin Tarantino couldn't make this shit up if they were writing scripts while dropping acid.

tip e. canoe's picture

the Lord of Indifference, otherwise known as King "Who Gives a Fuck About These Scumbag Lowlife Cockroaches Anymore, I Got a Peak Oil Wave To Surf?"

Manthong's picture

He can cry in his beer down in the lobby bar of the next Bilderberg meeting.

tip e. canoe's picture

he's too busy brewing his own.

Dugald's picture

Whats the fuss, it's all happened before.....but then it was called.....

                                                                  THE GOON SHOW

Hacked Economy's picture

Excellent spoof, everyone.  I really needed that laugh.  ;)

Now S&Pbay will soon be as worthless as eBay is today.  The glory days are behind them.  No need to worry about Deven Sharma, folks...I'm sure he's walking away with millions of dollars in earned salary and stock options.

Oh wait.  Sorry about that...I got the incoming Citibank CEO confused with Sharma for a minute.  Sharma probably only has until the end of the year (end of employment with S&P) at which point he'll have to start checking under his car every morning before starting it.

Silver Dreamer's picture

"it is dangerous to be right when the government is wrong."

Dental Floss Tycoon's picture

He got off better than I expected.  I thought he would get two to the head.

slaughterer's picture

Looks like OGolfer has been working on vacation after all.  

Sam Clemons's picture

"Governments lie; bankers lie; even auditors sometimes lie: gold tells the truth."
Lord Rees Mogg, economist & former editor of The Times

First we were going to print (borrow) our way to prosperity, then we were going to do accounting tricks on our way to prosperity, now we are going to lie to ourselves on our way to prosperity.  

"The projected U.S. budget deficit for fiscal year 2011 of $1.645 trillion is 43% of total projected government expenditures in 2011 of $3.819 trillion."  Blaming the S&P for this is like blaming the fire on the person who pulls the alarm.

Why do Americans desire to be deceived instead of told the truth?

LongBallsShortBrains's picture

Why do Americans desire to be deceived?

Too many lamp post without a politician swinging from them. The "dog " doesn't bite. Once a couple of lamp posts get occupied and they figure out that the dog does bite................. We will learn a lot of truths

Hacked Economy's picture

Dude, really?  You can't find an avatar with a Victoria's Secret underwear model, or even a firm set of mamms?  You have to put up a pic of a nutsack?

Koffieshop's picture

Why do Americans desire to be deceived instead of told the truth?

Because in groups we are prepared so sacrifice some common scene to feel good about ourselves and our community. The smart and ruthless know how to exploit this tenancy to self-delusion, but usually get too cocky ad risk the pitchforks eventually.

This is why we can't have long term peace and stability. Apparently this is good for the species, else evolution would have gotten rid of this effect.

bread n circuses's picture

The human race has only had widespread access to mass information for 500+ years or so (and really, really good access for the past 10 years).  This is not enough time for genetic evolution to work.  In the meantime, you can evolve your mind by educating yourselves and those around you.  This can ward off this effect you describe.

FreedomGuy's picture

Even the ancient scriptures say that offered the truth people often prefer the lie. That is the politicians' and governments' advantage. They know people "want" to believe the tripe they offer.  It is probably rooted in a fundamental preference to hope and believe for the best.

gunsmoke011's picture

Always Remember - while playing at this level -- Telling The Truth and Complete Transparity are Deeply Encouraged -- Just Not Tolerated.

Ahmeexnal's picture

Shoarma gets the boot, and in comes Falafel.

Confused's picture

Who doesn't love falafel? Seriously? 

spiral_eyes's picture

we're going into the "dissent will not be tolerated phase". 

first they ignore you, then they laugh at you, then they fight you, then you win.

this is the fight stage. 

tbone654's picture

MAN! Waiting to hear German Troops are marching into Poland...  Nothing to see here, move along...

Silver Dreamer's picture

No offense to you meant, but I really hate that quote.  History is full of examples where it fails miserably.  If they equals the govenrment, you often end up dead, not winning.

Mad Marv's picture

How long can TPTB keep this shit going?  Collapse already, so the healing can begin!

rocker's picture

Collapse ?  What ?   Can't do that, much more printing needed.  We have not bailed out all that need with new monetary swap lines created by FED to back stop the elite Bond holders who want a New Debt Line of Money Fed to them by the FED.  LOL 

Of course, we have Robert Prechter who has gone radical with 50 charts of old stuff and a 1 hour video of old stuff on why the Dow, S&P, Oil, Gold and Silver are going down. Before anybody jumps me. It was a FREE offer. I just had to read why he has been so wrong on everything again. Might the Dow go down, you bet. Could Gold correct, you bet. But this butt head told subscribers to short the market three Februarys in a row.  Told subscribers to watch silver collapse at $17.00.  This guy also says the FED does not matter and inflation is not real. He has had that view for over three years too. I guess he doesn't buy gas, food, electricity or pay taxess.  Hello, no inflation. LOL again.  

My thought. Stick with ZH, listen to real news and think.  ZH is a great place to start and finish.      

Harbourcity's picture


 

http://www.cbsnews.com/stories/2011/08/18/eveningnews/main20094323.shtml 

Was unavoidable.  S&P is paid by clients and it lost a lot of clients because of the downgrade... why would you pay a company to do you a downgrade?  Just hire Obama.

 

 

Like the government, it's a business after all. 

bread n circuses's picture

Next up:  JD Power (a MHP company) gives all auto awards to GM and all Banking Awards to Citi.

oa92000's picture


The S&P rating service is big mess itself..

They  gave their highest investment grades to mortgage-related securities which then plunged in value when house prices collapsed.

Rick64's picture

Lol, bet thats the first time you guys heard of that.

Strom's picture

ZH should do a story on this!!!!!!!!!!!1one

oogs66's picture

no way moody's downgrades them now

WarriorClass's picture

"So let us get this straight: in America when you dare to tell the truth, your career is over, while if you are a corrupt, lying, incompetent tax evader you not only get to be Treasury Secretary but likely will be on for life as long as you do the one duty you are entrusted with: pander to the interests of the Too Big To Fail financial institutions"

This is not new; I found it true in Corporate America for the last 20 years, as well as in the UK.  It's SOP.

wang's picture

I think before we rush to judgement we should respect the corporate governance that McGraw has in place. The seem like a decent group to me.

Presenting the Board:

 

dukeland's picture

Yes, so decent that they have now ordered each letter on all keyboards at S&P to be replaced just one letter "A".

Have fun typing any other letter now, bitches!!

CompassionateFascist's picture

"Douglas N. Daft"? "Hilda Ochoa-Brillembourg"??