Seeking Alpha
Seeking Alpha Portfolio App for iPad
Finance
(1)
Market Currents

More on McGraw-Hill (MHP -14.5%): The expected suit follows the breakdown in talks between...

  • Monday, February 4, 3:46 PM ET
    More on McGraw-Hill (MHP -14.5%): The expected suit follows the breakdown in talks between S&P and the DOJ over the rating agency's AAA ratings on 30 CDOs in early 2007. The DOJ had reportedly sought "10 figures plus" and an admission of guilt. S&P: "(We) deeply regret that our CDO ratings failed to fully anticipate the rapidly deteriorating condition in the U.S. mortgage market ... a DOJ lawsuit would be entirely without factual or legal merit." Moody's (MCO -8%).
Track new comments on this story

This news story has 20 comments:

  •  
    This has to happen.
    4 Feb, 03:58 PM Reply Like
  •  
    TIME TO BUY MHP!!! I've been waiting for a pull back. Thank you DOJ!
    4 Feb, 03:59 PM Reply Like
  •  
    A debtor country in imminent danger of a credit downgrade from the ratings agencies seeks to sue a ratings agency for 10 figures. A clear message is being sent here. And I don't think it bodes well for dollar denominated assets in the long term.

    Meanwhile the actual financial institutions that participated in the subprime madness just got bailed out. TARP.
    4 Feb, 04:06 PM Reply Like
  •  
    Seth, while CNBC is asking what this means for the stock market.....you are thinking clearly through all the B.S.
    Maybe DOJ was summoned to an office by FED, Treasury, et.al.
    4 Feb, 04:18 PM Reply Like
  •  
    Seth, Spot On! Is this yet another example of a government whose credibility is weakened by its poor choice of timing. If this had happened in 2009-10, it might have been viewed without skepticisim, but now... come on! It will be interesting to see who sticks to their guns the most. Will this scare the other rating agencies into towing the line, or will they make the interference blatant by reducing their ratings (as they should) while S&P tows the "party line" ? More drama sure to be good for the VIX.
    4 Feb, 07:54 PM Reply Like
  •  
    This is not your ordinary sideline news commentary. It is as you say "a clear message". It's too clear. If you used capital letters in your response, it might be considered a kookball driveby. I also don't want to be considered a kook, so I decided to say this.
    Look at Seth's comment !!!!!!!!
    4 Feb, 10:44 PM Reply Like
  •  
    Turn of CNBC, you'll be a better investor!
    8 Feb, 09:43 AM Reply Like
  •  
    As Michael once reflected on his father's advice " keep your friends close, and enemies closer". My filter is always on. Not a reflection on your advice, but on CNBC..
    11 Feb, 03:36 PM Reply Like
  •  
    Coming home to roost; this is just the beginning, a tip of the iceberg till April the 14th 2012, the 100th Anniversary Titanic day!
    4 Feb, 04:13 PM Reply Like
  •  
    Moodys is safe because W Buffet owns a big position, Obama wouldnt want to cause his buddy any problems, if they want an admission of guilt from S&P then about about the admission from W Buffet back in june 2010 that he was wrong but so was everybody else
    4 Feb, 06:43 PM Reply Like
  •  
    GS paid a fine of $550M but the market cap dropped by a multiple of that. MHP dropped $8 or $2.2B. Is the market saying that MHP will settle for much less than $1B?
    4 Feb, 09:26 PM Reply Like
  •  
    MHP cannot afford to admit guilt! They didn't do anything wrong legally
    8 Feb, 09:44 AM Reply Like
  •  
    The rating agencies peddle meaningless dross. Hope they break them all
    4 Feb, 10:14 PM Reply Like
  •  
    True, they do, but they are the only counterforce to the meaningless dross from the Fed and other CBs. Don't you find the timing the least bit intriguing?
    4 Feb, 10:48 PM Reply Like
  •  
    I see others inferring that the action taken is a warning shot 'across the bows' of MHP and MCO because we are being considered for a downgrade again. I'd have thought this potential action was flagged some time ago when the DoJ first announced their investigation, although the market is never as 'efficient' as I think it is, nor as others claim. Timing is probably coincidental, regardless of whether we are downgraded or not, the lawsuit will go ahead and likely succeed with a form of settlement.
    5 Feb, 06:53 AM Reply Like
  •  
    GS settled in 2010 for $550. Today MHP lost $2B+ in market cap.
    5 Feb, 12:30 AM Reply Like
  •  
    AAPL lost more than that and didn't get sued by DOJ
    8 Feb, 09:45 AM Reply Like
  •  
    I liquidated all my shares today. This lawsuit is bad not only because of the huge $ amount sought by DOJ, but it also opens doors other potential lawsuits against the big 3 rating agencies.
    5 Feb, 01:22 AM Reply Like
  •  
    Let's say DOJ wins it $5B lawsuit. It bankrupts the S&P. What happens to S&P 500, alltheir indexes, their advice. No more ratings of any kinds for pension funds to rely on.
    8 Feb, 09:48 AM Reply Like
  •  
    you mean to hide behind. These guys will have to do their own homework for once and live or die by the consequences
    8 Feb, 10:43 PM Reply Like
LATEST|
TODAY SO FAR|
YESTERDAY
Other date
DJIA (DIA) S&P 500 (SPY)
Latest Articles on Financials
More Latest Articles »