Next subprime shoe dropping?
A prescient prediction, as it's turning out, from Strategic Investment editor Dan Amoss as quoted in the July 3 DR:
"If this mortgage-backed security mess gets worse, there's a good chance that a 'ratings agency' scandal could unfold in the coming months – one that resembles the investment banking scandal of 2001-2002."
Which brings us to the news today:
Standard & Poor's named Deven Sharma to replace Kathleen Corbet as president after lawmakers and investors criticized the credit rating company for failing to judge the risks of securities backed by subprime mortgages.
Ah, but careful now, don't jump to conclusions…
McGraw-Hill Cos., the parent of Standard & Poor's, said in a statement yesterday that Corbet, 47, resigned to spend more time with her family. Her exit isn't related to the current credit- market turmoil, Steven Weiss, a New York-based spokesman for the company, said in an interview.
This is rich. The "spend more time with the family" meme has spread from government to the private sector. Maybe Corbet's family can vacation together with Alberto Gonzales's family, seeing as everybody really wants to spend some quality time these days.
In any event, Dan nailed it. His readers are finding profit amid the subprime troubles. To learn how you can too, check this out.