u.s. security and exchange commission is now investigating the company of allegations of insider trading before the country's rating change was officially announced as a market take out says this is just the start of a full scale investigation of credit rating agencies. the path itself probably doesn't begin or end with an s. and p. my guess is that the investigation is going to find if it's not just an arm waving show that there were some extra parties but had nothing to do with s. and p. made a great deal of money on friday there is clearly a political element to those if you know downgrades coming in you short the market prior to that you could make a great deal of money that is a serious concern and we get weeks within the system like there's a good question in regards to why you have an insider trading been investigated in the general sense lehman brothers for example was known by some other card counterparty to be functionally bankrupt for some time prior to when they went under and yet nobody at the federal reserve or the new york fed or anyone else bothered to say anything to anybody. t

u.s. securities and exchange commission being investigated for overestimating u.s. debt by some two trillion dollars and made much more serious allegations of insider trading these are the time greatest reported to have leaked to certain market play as hours before it became official and its financial analysts called an injury explains it's likely to lead to a much light a crackdown on rating agencies the path of probably doesn't begin or end with an s. and p. my guess is the investigation is going to find if it's not just an arm waving to show that there were some extra all parties but had nothing to do with s. and p. made a great deal of money on friday there is clearly a political element to this if you know it downgrades coming in you short the market prior to that you could make a great deal of money and that is the a serious concern if we have weeks within the system like there's a good question in regards to why have an insider trading been investigated in the general sense lehman brothers for example was known by some other card counter party to be functional

u.s. securities and exchange commission is now investigating the company of allegations of overestimating u.s. dead by some to trillion dollars and insider trading and it's believed that news of the downgrade was leaked to certain market powerplays even before it became official and financial analysts called dining out explains why this may need to soar scale investigation of all the rating agencies the path itself probably doesn't begin or end within it my guess is that the investigation is going to find . if it's not just arm waving to show that there were some extra party that had nothing to do with us and he made a great deal of money on friday there is clearly a political element with those if you know downgrades coming in you short the market prior to that you could make a great deal of money that is a serious concern if we get weeks within the system like there's a good question and regards to why you have an insider trading been investigated in the general sense lehmann brothers for example was known by some of their card counterpart to be functionally bankrupt for some time prior

u.s. securities and exchange commission they're being investigated for over estimating u.s. debt by some two trillion dollars i mean much more serious allegations of insider trading and use of the downgrade is reported to have leaked to the market power players hours before it became official at us financial analyst cold explains it's likely to lead to a much wider crackdown on rating agencies. the path itself probably doesn't begin or end with the american team i guess the investigation is going to find if be if it's not just an arm waving show there were some extra parties but had nothing to do with s. and p. made a great deal of money on friday there is clearly a political element to those if you know a downgrade coming in you short the market prior to there you could make a great deal of money and there is a serious concern if we get weeks within the system like there's a good question in regards to why have an insider trading been investigated in the general sanchez lehman brothers for example was known by some other part of our party be functionally bankrupt for some ti

and p. received a fear its response from the u.s. treasury which blamed the agency making a two trillion dollar mistake the u.s. security and exchange commission is now investigating the company over allegations of insider trading for the company's rating change was officially announced that financial analysts can burn in just says this is just the start of a full scale probe into the activities of credit rating aid. it seems. the path that probably doesn't begin or end with an f m p no i guess the investigation is going to find if it's not just arm waving to show that there were some extra party that had nothing to do with us and he made a great deal of money on friday there is clearly a political element to those if you know downgrades coming in you're short the market prior to that you could make a great deal of money that is a serious concern if we get weeks within the system there's a good question in regards to why you have an insider trading been investigated in the general sense lehman brothers for example no one by some other part of our party will be functionally bankrupt for some time prior to when they went under and nobody of the

u.s. securities and exchange commission after stripping the u.s. of its treasured aaa credit score but it's also being quizzed over dozens of improperly rated mortgage securities leading up to the crisis of two thousand and eight but financial analyst margaret bogan raef explains why the ratings matter so much to so many. bradleys agency if it is within the private sector but the general public would so much weight on the ratings and the way that they were is to bury groups and very valuations that there guinea are actually pain damage so you can't you know you would have an opportunity to you know take one hundred three identical jobs and you when you want to pay due to that how does this actually work trust that is clear in the agencies to decrease or the clarity to increase i believe something will be done on the margin i'm not positive that it's going to dramatically change the the financial world is scared i mean did the dollar and you know the united states generally we are going to go to country we're going to go to currency and regardless of

u.s. securities and exchange commission after stripping the u.s. of its treasured aaa credit score but it's also being quizzed over dozens of improperly rated mortgage securities leading up to the crisis of two thousand and eight four for more details are now joined from chicago by financial on the small grids a good result of being with us here on r.t. that is victory for let's look at the agencies themselves first of all they come under heavy criticism of those same for initially giving investment grade rating says to curate that by subprime mortgages which triggered the two thousand and eight financial crisis so can their assessments really be reliable. well i think that's a really great question and to the audience i mean there is this timing seems to a lot of the public particularly here in the united states where everything is so politicized right now although the timing of this investigation seems a little questionable isn't question that it's been a long time coming i mean frankly even agencies in this within the private sector but the gener

u.s. securities and exchange commissions first ever chief operating officer in may of 2010 commuters bought for the agency's information technology our natural reporting and record management duties. prior to 20 sec, he was managing vice president at capital one which is just acted to acquire ing direct in delaware right in my hometown. and capital one mr. heslop was responsible for companies information and risk management operations. he received his bachelor of arts degree from davidson college. davidson college, when did you graduate? 76. john spratt, congress and john spratt is one of your graduates as will. do you know who the president is there no? [inaudible] >> she is from delaware. delaware. she just became your president. the first of this month. i think the first woman really of the calls. and you have your masters in business administration from college of william and mary where my youngest son will start his senior year this fall. great school. david wise is greater for fiscal infrastructure issues at the u.s. government accountability office, actually known as gao. he speciali

u.s. securities and exchange commission since december 2007. prior to join the sec he served as inspector general for the peace corps, and practiced federal administrative law for a decade and the private sector, inspector general is a graduate of units of them which makes him a terrapin, and a cornell law school. jeff heslop was named the u.s. securities and exchange commissions -- commissioners first ever chief operating officer in may 2010. he is responsible for the agency's information technology, financial reporting and records management duties. prior to joining the sec he was managing vice president at capital one, which has just acted to acquire ing direct in wilmington, delaware, right in my hometown. and there at capital one he was responsible for the company's information and risk management operations, received his bachelor of arts degree from davidson college. davidson college? when did you graduate? 76. john spratt, congressman john spratt is one of your graduates as well. do you know the president is there now? [inaudible] she is

u.s. securities and exchange commission has asked standard and poor's to disclose who within its ranks new of the decision to downgrade u.s. debt before it was announced last week. host: i want to use them as a springboard to talk about your overall views of the downgrade decision and what effect it is having on the financial markets. guest: the second part is a tough one. london is in flames. we had decent, not good, but decent job numbers. you have instability and concerned about greece, ireland and spain. it is hard to pick those apart and say the credit downgrade had this effect. it was not helpful. yes impious taken a lot of heat, and my view is that they're -- the s and p is taking a lot of heat, and my view it is that it was a statement about the political system. when the treasury pointed out $2 trillion mistake. they are paid for their opinion. if their opinion is wrong, they will suffer for it. interestingly enough, the securities that they downgraded, the next day people bought them like hot cakes. they made a political statement. host: the top story in "the wall street journal.

u.s. security and exchange commission we know this all too well is an agency that has been granted independent agency as well as other agencies. in july 2010, the commission entered into a sole source lease for 900,000 square feet space of a privately owned building called constitution center in washington. that lease would have cost taxpayers some $556 million over 10 years. although the sec has held independent leasing authority for more than 20 years, did commission's inspector general has found the agency still lack adequate policies and procedures for managing its leasing actions. in fact, this was the second time within the past five years in which the sec -- fcc was involved in an unnecessary leasing way. similarly in 2006, the fbi executed a 30-year operating lease to house employees in its chicago field office. that cost an estimated $40 million more than construction over a 30-year period. fortunately, both congress and the obama administration are united in their commitment to address these issues. the president's latest budget included a recommendation from a civilian property real

u.s. and china. >>> securities and exchange commission under fire for allegations that it illegally destroyed thousandsted to probes of bernie madeoff, goldman sachs and others going back years. chuck grassly called for an investigation into the agency after an sec whistle blower contacted him with the allegations. >>> the drought in texas racked up $5.2 billion in agricultural losses. that's a record for the state. economists say texas at texas a&m without rain to help winter wheat it will get worse. chavez is getting in on the gold rush. he's planning to take control of the country's gold industry. that's a move that allows him to crack down on illegal mining and move the country's existing gold reserves out of foreign banks and into venezuelan vaults. one critic that describes it was the looting of the nation's savings. >>> it is official. plug-in cad slack coming. gm announces it is moving forward with plans to build an electric cadillac. no word on how much it will cost or when it will hit show room floors. "american morning" back right after the break. >>> it is 29 minutes after the hour. time fo

u.s. of its top aaa rating last week by the time s. and p. received a fear as response from the u.s. treasury which played the agency of making a cheap trillion dollar mistake the us security and exchange commission is the best days of the company over allegations of insider trading before the country's regime change was officially announced as financial analyst call that it just says this is just the start of a full scale prayed into the activities of credit rating agency. the probably doesn't begin or end with innocent people my guess is the investigation is going to find. if it's not just an arm waving to show that there were some extra party that had nothing to do with us and made a great deal of money on friday there is clearly a political element for those if you know a downgrade coming in you short the market prior to that you could make a great deal of money and that is a serious concern within the system like there's a good question in regards to why you have an insider trading been investigated in the general financial lehmann brothers for example world was known by some of their card counter parties to be functionally bankrupt for some time prior to when they went under and yet nobody

actually tens of millions and maybe even hundreds of millions of extra dollars in costs. for example, the u.s. security exchange commission we know this one all too well as an agency that has been granted an independent leasing authority along with another agency. in july 2010 the commission entered into a sole-source leaves for 900,000 were feet of space of a privately built out and called constitution in washington are the least would've cost taxpayers $556 million over 10 years. although the sec itself independently for an authority for more than 20 years the commission's inspector general assigned the agency still? adequate policies and procedures for managing leasing actions. in fact, this was the second time within the past five years in which the sec was involved in an unnecessarily delete an arrangement. unfortunately, this is not the only agency that operates this way. similar -- to similarly in 2006, the di executed a 30 year to lease the chicago field office that estimated $40 million more than construction over a 30 year period. for surely both congress and the obama administration are united in their commitme