This is amusing. (Thanks goes to Pete)
S&P today placed Moody's A-1 short-term debt rating on CreditWatch negative.
This is where the irony really kicks in.
In putting Moody's rating under review, S&P cited broader declines in revenue that have affected both companies since the collapse of the subprime home loan market sapped new issues of mortgage-backed bonds and collateralized debt obligations, which package pools of debt into new securities.
You got to love it. I constantly get images of Dumb and Dumber when I hear the names of these companies mentioned.
On a more serious front S&P cut $6 billion of prime jumbo mortgages that were mostly AAA. This is very important because AAA is the grease of the financial system. Cut of A and BBB securities are important but AAA securities can be brought to FED window and are excepted readily as collateral at other banks. These securities are very important to the financial system.