The Most Dubious Business in America

In the following video, John Reeves takes a look at Standard & Poor's, a subsidiary of The McGraw Hill Companies (NYSE: MHFI  ) , and the legal case currently being brought against it by the Justice Department. The company is being accused of knowingly and willingly defrauding investors, and a key part of the prosecution's case will be proving S&P knew ahead of time that the credit ratings it assigned to numerous mortgage-backed securities were inaccurate. John examines the paradox between S&P attempting to show that it had no way of knowing what the actual credit ratings should have been when in fact its business is exactly that -- and it is paid quite a lot of money to do so.

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