http://www.bloomberg.com/news/2011-08-13/sec-reviews-s-p-math-possible-leak-of-rating.html
The SEC has opened a “Review” of the S&P 500 downgrade – and you know the moment Congress gets back from their August Holiday, they’re going to hold hearings and try to get S&P to commit “Contempt of Congress” at a show trial. Petulant children don’t like it when Daddy cuts up their credit card.
The origin of the phrase “Kill The Messenger” is close to as old as civilization. Tyrants lash out at the innocent party giving them the information they need to know to make informed decisions. You kill enough messengers, you soon have no idea what is going on in the world beyond your moat and drawbridge.
We know for a fact the Timothy Geithner was informed of the downgrade before the public announcement, and you know that two seconds later the White House knew. If the SEC really cares about “insider information”, the first thing they should do is subpoena the phone logs, Blackberry messages and email records of every senior Treasury Department and White House official from the time S&P called Geithner until S&P made their announcement. It was clearly leaked by someone – Drudge had the “rumor” on his web site in the early afternoon. I wonder how long after the White House knew that the Democratic leaders of Congress were told?