S&P Emails and IMs Part of Government Suit

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When will people learn that internal communications can go public? The federal government is suing Standard & Poor's for knowingly rating securities too highly, in effect, bolstering deals before the 2008 financial crisis. Internal emails and instant messages support this claim.

In one IM exchange, two analysts discuss a pending crash, and one admits that "we give in anyway."

S&P IM
In another exchange, one analyst IMs to another that "we rate every deal...it could be structured by cows." And in an email exchange, an analyst describes the pressure at S&P, and a client questions the built-in conflict of interest.

S&P email

Although the video doesn't seem to be available online, analysts created a parody of the song, "Burning Down the House," by the Talking Heads.

What was apparently clear to some pockets of Wall Street took a while to hit Main Street, where the real damage was done. 

Discussion Starters:

  • How else could these analysts have handled the pressure they were under?
  • Why did these analysts feel comfortable communicating this way? Do you think S&P doesn't have a clear email policy? What else could be going on?