Tuesday, January 24, 2012

Governments look to put the hammer down on ratings agencies

It took long enough, but it appears that sovereign governments just won't go down without a fight to save their corrupt economies.  In a event that makes you reminisce about the days of Benito Mussolini, the Italian police brought the hammer down and busted into the offices of Fitch weeks after the ratings agency began downgrading their sovereign debts, and uncovering the toxicity of their Euro bonds.

The Italian tax police was in the offices of ratings agency Fitch in Milan on Tuesday to carry out checks ordered by prosecutors investigating rival agencies Standard & Poor's and Moody's, a senior prosecutor told Reuters.

"Men from the financial police are at Fitch in Milan," said Carlo Maria Capristo, chief prosecutor in Trani.

The Trani prosecutors are investigating possible crimes of market manipulation and illicit use of privileged information when Standard & Poor's downgraded Italy earlier this month. - Reuters via Zerohedge

Now, we know the Fed releases inside information to their lackeys in advance of montary policy changes and news, and ratings agencies such as Fitch and Standard and Poor may be doing so as well, but it is humorous for nations such as Italy to be using that as a scapegoat to cover up their own poor abilities in dealing with economies, debt, and monetary systems.


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