U.S. Attorney General Eric Holder brought forward a lawsuit against S&P this week. The same S&P whose name is licensed for its stock index is also a rating agency. In theory, they are supposed to produce a rating that reflects the risk of a given bond defaulting. In reality, they were complicit in promoting a fraud by issuing ratings that were beyond reason, and they are now accused of issuing ratings they themselves, didn’t believe.
How could believe this is happening but yet same as with the banks there is only a few rating agencies and they are too big to fail.
If not them, whom are we going to trust then?