BigPond News Sunday, August 14, 2011 » 01:29pm
The US Securities and Exchange Commission has launched a probe into the process by which Standard Poor’s downgraded the US credit rating, the Wall Street Journal reported.
US officials lashed out at SP after it docked the country’s credit rating from AAA to AA+, accusing the agency of committing a $US2 trillion ($A1.93 trillion) maths error and of using a faulty baseline. SP has stood by its analysis.
The Wall Street Journal, citing unnamed sources, said the SEC would investigate the mathematical model used by the agency and look into which SP employees knew of the decision to downgrade before it was announced.