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S&P’s president steps down

Standard and Poor’s president Deven Sharma has stepped down less than a month after the firm controversially downgraded its credit rating of the US.

Sharma will be replaced by Citibank chief operating officer Douglas Peterson from September 12, 2011, the agency has confirmed.

Sharma will remain with S&P parent company McGraw-Hill until the end of the year to help with a strategic review.

S&P was criticised heavily for its decision to downgrade the US credit rating from AAA. US treasury secretary Timothy Geithner has claimed the agency showed “terrible judgement and handled themselves poorly.”

The company is also rumoured to be under investigation by the US department of justice for AAA ratings that it assigned to certain mortgage investments prior to the credit crunch in 2008.

McGraw-Hill said in a statement that Sharma ’was ready for new challenges’ after helping S&P separate its data, pricing and analytics business from its ratings business.

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Comments

There are 5 comments at the moment, we would love to hear your opinion too.

  1. Just go to show that you have to be very brave to go against the US government !!

  2. Brian Weatherley 23rd August 2011 at 1:19 pm

    And not a moment too soon.
    Power without responsibility and accountability yet again has proved to be a very dangerous combination.
    I have queried such agencies over many years but like little Topsy they have just “growed and growed”.

    Perhaps we will see a more responsible attitude

  3. ………………….or wealthy enough not to care

  4. Valjinder S Virdee 23rd August 2011 at 2:24 pm

    I think this proves again that there are no real monitors only pupets of diffrent degree. Sharma was probably right , as always the brave pay with their lives.
    No shame Mr Sharma , good luck in the future. the USA economy will come out into the open anyway.

  5. Gordon Chambers 23rd August 2011 at 3:53 pm

    Shoot the messenger – the same old story.

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