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Ratings Companies Hiding Behind First Amendment?

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  • Description

    FBN’s Gerri Willis on ratings companies’ role in the mortgage meltdown.

  • Duration 1:57
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In the world of banking and finance the rating agencies' opinion is the last advice that the big money guys put down their doubt so what's important.

Yesterday the US Justice Department slapped the nation's biggest agencies Standard and -- With a billion dollar lawsuit.

Saying it -- -- job rating mortgage bonds that exploded in the financial crisis.

Its -- S&P is expected to argue what it says can't be attacked because of first amendment rights.

I don't know who I'm more surprised by the Justice Department or S&P.

First -- Eric Holder.

Five years after the event you suddenly find a rating agency was asleep at the -- So with everybody else in the financial crisis from the home buyers who took on mortgages they couldn't afford.

To the banks tuition them to the investors who lapped up every bit of housing investment that -- put their hands on.

The rating agencies could've stopped the merry go round they could've said that what was obvious among a handful of savvy investors that the individual were just supporting these investments -- shock.

Not worth the paper they were written non.

But the agency didn't do that they slept too.

But different from the banks -- the borrowers they're job is to rate investments.

Estimate their value their worthiness but they did step stick their neck out and they didn't do their job they didn't run against the tide.

He's the First Amendment to -- -- that that is to defend themselves is ridiculous it's ducking their responsibility hiding behind the constitution.

The mistakes these ratings agencies cost sister planning we paid more than a 187 billion dollars to bail out Fannie Mae and Freddie Mac.

Homeowners lost nearly seven and a half trillion -- that -- -- sixteen million homes went into foreclosure.

To be sure homeowners made mistakes but they paid by being forced out of their homes.

Banks of beta price a never ending list of attorney general's hit them up for foreclosure settlement money.

But the rating agencies think about Scot free until yesterday.

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