Quote:
Originally Posted by DieselAddict
F&F owns "only" about 50% of all mortgages.
From what I know the main problem was the credit rating agencies like Standard & Poor giving A+ grades to risky mortgage securities because it was good for their business.
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That is a big chunk for an "only".
Not sure about that. I don't think I saw that PBS show. Got a link to that? Could it be that S&P thought that it was A+ because it had some sort of backing and they could sell that idea and give it an A+? I would think it would hurt the company if they simply rated everything A+ without some way of justifying it. May be a half assed justification but what was their justification as to their rating? I would think that a company that simply says everything is A+ would lose all credibility when it comes to rating.