Why the New York AG Is Investigating S&P

The video discusses the New York State Attorney General's investigation into Standard & Poor's (S&P) for potentially bending rules to rate mortgage-backed securities. The investigation, reported by Bloomberg, is part of ongoing scrutiny since the financial crisis. It highlights the challenges of lengthy investigations, such as the statute of limitations and the tendency for organizations to settle. The video concludes with a discussion on potential outcomes and the role of legal tools in reaching settlements.

What is the primary focus of the New York State Attorney General's investigation into S&P?

• The financial performance of S&P in recent years

• The marketing strategies used by S&P

• Whether S&P manipulated rules to secure business for rating mortgage-backed securities

• The hiring practices of S&P

What type of securities is the investigation specifically looking into?

• Cryptocurrencies

• Corporate stocks

• Collateralized mortgage-backed securities

• Government bonds

Which two organizations are also involved in investigating the deals made by S&P?

• IMF and European Central Bank

• FBI and CIA

• SEC and Department of Justice

• Federal Reserve and World Bank

What is one of the main challenges faced in lengthy investigations like the one into S&P?

• Too many organizations involved

• Statute of limitations running out

• Lack of public interest

• Insufficient funding

What is a common resolution path for large organizations facing investigations?

• Filing for bankruptcy

• Relocating their headquarters

• Settling with law enforcement agencies

• Ignoring the investigation