Los Angeles Gives S&P The Old Heave-Ho.

I Love L. A.

Los Angeles, which recently saw its $7-billion investment portfolio downgraded by Standard & Poor's, has decided to no longer hire the rating company to rate the soundness of the city's investments.

"We have really lost faith in S&P's judgment," Interim Treasurer Steve Ongele said.

After its downgrade of U.S. debt last week, S&P cut its rating of L.A.'s general investment pool to AA from AAA. It also downgraded dozens of other municipalities with large investments in U.S. Treasury notes.

"The market crash that came with the real estate debacle, it happened because folks like S&P rated AAA corporations that were not worth much of anything, corporations that are no longer there today," Ongele said. "The fact that we have the courage to do this, the fact that we are the first city, I think that's a big bragging right."

Fight the power.

Comments

[fallenmonk]

S&P is obviously incompetent and I don't why anyone would give them any credibility. Everyone should refuse to hire them until they can demonstrate competence. Their downgrade of U.S. Treasuries actually increased sales so it is obvious that the movers and shakers don't give them any consideration.