[Congressional Record Volume 159, Number 22 (Tuesday, February 12, 2013)]
[House]
[Page H438]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
GOVERNMENT SUES STANDARD & POOR'S
(Ms. KAPTUR asked and was given permission to address the House for 1
minute.)
Ms. KAPTUR. Mr. Speaker, I rise today to acknowledge the U.S.
Department of Justice for finally taking some substantive action
against one of the credit rating agencies, Standard & Poor's, for its
role in causing the greatest economic crisis since the Great
Depression.
When Wall Street's housing bubble burst in 2008, it sent shock waves
through our economy. That shock wave may not have been so destructive
if credit rating agencies like Standard & Poor's did not create fraud.
Rather than assessing real risk and due diligence on the securities,
Standard & Poor's invented a system of defrauding investors by
providing the highest rating as long as the clients paid Standard &
Poor's enough money. If Standard & Poor's actually rated the mortgage
securities for what they were truly worth, our entire banking system
and economy may not have collapsed.
While the Department of Justice should be praised for taking some
action against Standard & Poor's, other rating agencies were left out
of the case. And the fact is Justice's case is only a civil one, not a
criminal one. That tells you who really holds political power in our
country.
Thanks to Wall Street, America lost over 8 million jobs. American
households lost over $19 trillion in wealth. Yet no major Wall Street
executive has ever faced the threat of jail time. Real cases could
yield real dollars back to our Treasury and help America pay the bills
that resulted from the Great Recession beginning in 2008.
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