Senate Banking Committee Weighing Probe Of S&P Downgrade

Capitol Building

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According to a Senate Banking Committee aide, the committee is gathering more information about the S&P downgrade of U.S. debt in preparation for a possible investigation.Earlier Monday, committee chairman Tim Johnson (D-SD) released the following statement on the downgrade:

“In the minds of serious, reasonable, and informed individuals there is no doubt that the U.S. will meet its debt obligations and we are seeing even more proof of that today.  As the financial markets stumble, investors continue to regard Treasury debt as a safe haven in times of economic uncertainty.  This irresponsible move by S&P may, however, have spillover effects that tax the American people by increasing interest rates on home loans, credit cards, and car loans, and by increasing the cost of finance for some state and local governments.  I am deeply disappointed in S&P’s decision to enter into the game of political punditry.”