Originally Posted by
minimoke
Two things come to mind which doesn't lift my concern over SCF.
Firstly, whats with this "President For Life" - this sounds more like the kind of thing a Banana Republic lead by some despot would do.
Secondly - whose analysis should we rely on? On one hand we have Treasury who were, apparently, happy enough to let SCF into the Extended Guarantee Scheme based on SCF's BB (negative Watch) rating and presumably access to all the same information that S&P has. On the other hand S&P has had access to informaiton and decided to not hold the rating, nor drop them one nothch - they dropped them two notches to b+. What happened to the BB-? And this over just a few weeks!
If S&P are on the ball surely this means Treasury have been either casual in their analysis or generous with the use of tax payer cash to provide potential props. If Treasury are on the ball then S&P ratings can't really be worth much. Which should it be?
Have we now got a Treasury using tax payer funds propping up finance companies?