S&P Downgrades Berkshire Hathaway Rating
Standard & Poor's cut a major rating for Warren Buffett's Berkshire Hathaway, saying the move better reflects the company's dependence on its core insurance operations.
Ratings agencies
Fitch Downgrades China's Credit Rating on Rising Debt Concerns
Global ratings agency Fitch cut China's long-term local currency credit rating, citing financial risks from rapid credit expansion alongside the rise of shadow banking activity.
Moody's Downgrades UK Rating From AAA to AA1
Credit ratings agency Moody's Investors Service downgraded Britain's government bond rating one notch from the top AAA to AA1 Friday, citing weaknesses in the economy's medium-term outlook. Moody's said "subdued" growth prospects and a "high and rising debt burden" were weighing on the British economy.
S&P Expects U.S. Lawsuit Over Its Mortgage Ratings
The U.S. government is expected to file civil charges against Standard & Poor's Ratings Services, alleging that it improperly gave high ratings to mortgage debt that later plunged in value and helped fuel the 2008 financial crisis.
Role Reversal: Ratings Agencies to Face Review from the E.U.
The European Securities and Markets Authority has begun reviewing how Standard & Poor's, Fitch, and Moody's Investors Service evaluate banks, and if the big three ratings agencies aren't shaking in their boots, maybe they should be.
Why You Need to Be Your Own Stock Analyst
Sell-side analysts are often criticized for acting too slowly when it come to downgrading companies and lowering estimates. That means if you rely on the experts, you'll be reacting late too.
Bank of America Sued for Countrywide's Mortgage Sins, Again
On Monday, a group of institutional investors sued Countrywide and Bank of America over Countrywide's mortgages practices. The bank is accused of issuing vast numbers of loans using methods that went beyond lax standards and into fraud, with the sole goal of repackaging them into securities to resell with inflated ratings.
The Mortgage Mess: Blame Banks, Not Homeowners
After an exhaustive examination, DailyFinance's legal reporter comes to a clear verdict. Banks have done three things to create the massive glut of foreclosures choking America's legal systems and laying waste to its real estate markets.
S&P's New System May Lead to Mass Downgrades for Banks
Standard & Poor's is revamping its credit rating methodology for banks and financial institutions in a way that may cause about 40% of rated banks to get a downgrade, The Wall Street Journal reported Tuesday.
Flawed Incentives Were the Rot Behind the Mortgage Crisis
The mortgage-backed securities meltdown whose effects still haunt our economy sprang from a simple cause: The rules of the game gave big incentives to every player involved to ignore the problems and keep collecting their fees. And despite financial reform, those rules haven't changed much.
Legal Briefing: Need a Job? Sue Over Patent Marking
In Wednesday's legal news, the Texas Attorney General has appealed a judge's decision to grant a divorce to two men who were married out of state; the SEC vows to pursue overseas ratings fraud; and companies that incorrectly claim their products are patented can be sued for $500 per product.
Moody's Cuts Outlook for Several Big U.S. Banks
Bank of America, Citigroup and Wells Fargo received some not so good news late Tuesday as Moody's Investors Service lowered their outlook to negative because of a new law that will likely lower the possibility of government bailouts.