NEWS ARTICLE SUMMARY Essay Example | Topics and Well Written Essays - 500 words

NEWS ARTICLE abbreviation - Essay ExampleStandard & Poors is an all-important(a) financial company in the United States that provides services inwardly the credit and stock industries. The issue between the second and Standard & Poors stems from the fact that the latter company may have violated federal securities laws related to its ratings of collateralized debt obligations in 2007, as the financial crisis was getting under commission(Rizzo).Standard & Poors is a company that often provides a service to the country by raising and lowering credit ratings of companies and countries. When it raises or lowers the rating, it is essentially providing a report card for how well that company/country is doing in their business and their business practices. The SEC believes that Standard & Poors basically did not do their job in monitor companies like Sallie Mae and Freddie Mac which were significant contributors to the housing/ mortgage crisis that ultimately led the United States in to this severe deferral in the first place. According to Patrick Rizzo, Some critics have verbalize it(Standard & Poors) and other ratings agencies helped contribute to the crisis by not warning about the dangers of sub-prime mortgages(Rizzo). So, by publicly considering legal or civil action against Standard & Poors, the SEC is making a statement about this company and casting a negative light upon their practices.It is important to think about what the SECs motive might be however in doing this. decease month, Standard & Poors lowered the United States credit rating from AAA to AA+(Swann). This was done in August 2011 and was said to be done due to the conflict going on in the United States g everywherenment over raising the debt ceiling. The lowering of the credit rating was seen as a big deal and an overall input signal on how the United States was doing in handling their economic woes. Therefore, it does not seem inconceivable that the SEC, which is a vox of the