and p. received a few areas response from the us treasury explained the agency of making a two trillion dollar mistake he us security and exchange commission is down best in the company aig allegations of insider trading before the country's rating change was official well as our financial analyst a car this is just the start of a full scale private get to reseize of credit rating agencies. the path itself probably doesn't begin or end with an if impede my guess is the investigation is going to find out if the if it's not just an arm waving 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 this 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 and we get weekly from the system like there's a good question in regards to why hasn't insider trading been investigated in the general sense lehman brothers for example 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 of the sort

treasury which plane the agency of making a two trainee and on a mistake the us security and exchange commission is now investigating the company over allegations of insider trading before the country's rating change was officially announced as financial analysts call that into says this is just the stuff of a full scale prayed to the activities of credit rating agency. the path itself probably doesn't begin or end with an if indeed my guess is that the investigation is going to find if it's not just an arm waving to show that there were some extra party it would have nothing to do with s. and p. made a great deal of money on friday there is clearly a political element for those if you know downgrades coming in you short the market prior to there you could make a great deal of money and that is a serious concern if 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 lehmann brothers for example was known by some other part of town to be functionally bankrupt for some time prior to when they went under an

whose screwed us did the securities and exchange commission cover up as the crimes on wall street republican senator chuck grassley is alleging that the f.c.c. destroyed more than nine thousand documents related to investigations into some of america's top banks during the height of the financial crisis during bush's tenure in two thousand and eight and continuing in two thousand i among the documents destroyed were files related to the burning made off ponzi scheme miles on goldman sachs and the g.e. and other files looking into the behavior of big banks like bank of america citi group wells fargo and morgan stanley in a letter to the chairwoman of the f.c.c. senator grassley wrote it doesn't make sense that an agency responsible for investigations would want to get rid of potential evidence if these charges are true the agency needs to explain why it destroyed documents how many documents are destroyed over what timeframe and to what extent its actions were consistent with the law it looks like this is another case of corporate capture of government regulators but even more troubling maybe

securities and exchange commission they investigated for overestimating us that by some two trillion dollars and that much more serious allegations of insider trading these are the time greatest reported to have leaked to certain market power players hours before it became official and its financial analysts called the ninja explains it's likely to lead to a much of one to crack down on race and it's. the path of probably doesn't begin or end with an s. and p. m. i guess the investigation is going to find if be if it's not just an arm waving show 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 your short term market prior to that you could make a great deal of money but that is a serious concern if we get weeks within a system like there's a good question and regards to why you have an insider trading been investigated in the general sense lehman brothers for example was known by some other card counter parties to be functionally bankrupt for som

the dreaded markdown the securities and exchange commission is now investigating the company of allegations over estimating us dead by some two trillion dollars and insider trading it is believed that news of the downgrade was leaked to certain market powerplays even before it became official and financial analysts code denninger explains why this may lead to a full scale investigation of all the rating agencies. the path itself probably doesn't begin or end with an f. and b. my guess is that the investigation is going to find if it's not just an arm waving show that there were some extra all parties that 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 downgrades coming in you short the market prior to that you could make a great deal of money that is a serious concern weeks within the system there's a good question in regards to why you have an insider trading been investigated in the general sense lehmann brothers for example was known by some other part of our party to be functionally bankrupt for some time prior to when they we

securities and exchange commission 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 a downgrade is reported to have leaked to the market power players hours before it became official i guess financial analyst told them enjoy explains it's likely to lead to a much wider crackdown on rating agencies. the path that probably doesn't begin or end with him if indeed my guess is that the investigation is going to find if be if it's not just an arm waving to show that there were some extra all parties that had nothing to do with us and he 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 there you could make a great deal of money and that is a serious concern if we have weeks within the system there's a good question in regards to why have an insider trading been investigated in the general sense lehmann brothers for example was known by some other part of our party will be functionally bankrupt for some time prior to when they went under and yet nobody of the sort of reserve or

security checks. it was the right thing to do. host: let me move on to the s&p up downgrade. i want to use the front page of "the financial times." the 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 po

the securities and exchange commission says hugh hefner's son-in-law traded playbook stock using insidermation and accused of using that knowledge. he has grooeed to pay $168,000 to settle the sec's lawsuit. >>> dolly parton apologized to a gay couple. one of the women was denied entrance because of her marriage is so gay t-shirt. park employee made her turn it inside out. dolly said she totally supports the gay community and all families welcome at her park. >>> after more than 50 years supporting the muscular dystrophy association, jerry lewis is out as the national chairman. the mda thanked him for his service calling him a world class humanitariahumanitarian. he hosted the mda telethon every year. >>> tiger woods is back on the tour. almost two years since woods last won a tournament. cnn's ted rowlands is at firestone country club in akron, ohio, for tiger's return. ted, a lot of things going on, not only the injuries, but also let's not forget a sex scandal that completely rocked his head in the game. >> reporter: yeah. well, it's been about two years of inconsistent play on the co

watch this morning, the securities and exchanges commission says it's investigating the recent downgrade of u.s. credit by standard & poors. the sec says it wants to know the mass used by the firm when it used the decision to downgrade the credit rating. the treasury department maintained all week the downgrade is wrong because of a $2 trillion accounting error. the sec is also looking into who knew about the downgrade before standard & poors made its announcement. >>> the new school year is just around the corner, and for some families that means back-to- school shopping. 15% of most retailers annual income is running up during back-to-school sales. independent research firms say 82% of parent say they'll spend the same or less on back-to- school supplies compared to last year. only 12% said they'll be spending more. >>> a canadian company is recalling 380,000 pounds of bacon over concerns about listeria contamination. the canadian bacon is sold under the names napoleon, stefano, bellissimo. the recalled products have production dates before august tenths, and have the est number 169-a. so far no illnesses have been reported. >>> a california company has announced

us. what are you finding out? >> the fact is that these investigations have been underway well before s&p's recent downgrade of the united states. sources confirmed to cnn that the department of justice and the secures and exchange commissionave been digging in to the inner workings of the nation's largest credit agency standard & poor's and moody's, focusing on their failure to fail to assess the risk of mortgage securities. s&p and moody's are targets of federal investigations into more ganlg securities that went shower during the financial crisis. according to sources familiar with the inquiry, attorneys from the department of justice and the securities and exchange commission have been digging into the rating agency's method onle gi, in particular, did executives veto credit analyst efforts to downgrade ratings so as not to lose business on the issuers of securities who are paying to berated. >> the credit rating agencies fail spectacularly in the years leading up to the financial crisis. >> reporter: the rating companies have been getting slammed in congress and in depositions given on to federal investigators. one form of credit analysts told cnn he had had two interviews in the past six months with federal agents an