Suburban Guerrilla

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Jan 30th, 2008 at 6:56 pm by Susie

NEW YORK (AP) — Standard & Poor’s Ratings Services is considering slashing its rating on more than $500 billion of investments tied to bad mortgage loans, the ratings agency said Wednesday.

The massive downgrade would threaten a broad swath of the world’s finance industry, S&P said, ranging from Wall Street’s trading desks to regional banks to local credit unions.

[…] S&P acknowledged the potential for these downgrades to ripple throughout the world of banking and finance. Banks have already posted $90 billion in losses on these types of mortgage investments, and S&P expects losses to reach $265 billion.

Posted in Corporate Statism, Dirty Rotten Scoundrels, Our Booming Economy, Recession Depression