Standard & Poor's president replaced amidst mortgage crisis
Business News
Standard & Poor's president replaced amidst mortgage crisis
Aug 31, 2007, 15:47 GMT
New York - In what will likely be a series of management shuffles in the wake of the escalating US mortgage and credit crisis, Standard & Poor's Friday named Deven Sharma to replace Kathleen Corbet as president.
The company has been criticized by lawmakers and investors for its failure to anticipate the risks of securities backed by subprime mortgages, Bloomberg financial news service reported.
Subprime mortgages are issued by financial companies, not by banks, to risky borrowers at initial low-interest rates. But interest rates on such loans then rapidly rise, putting the monthly payments out of reach for the borrowers.
McGraw-Hill Cos, the parent of Standard & Poor's, said in a statement that Corbet, 47, resigned to spend more time with her family and not because of the roiling credit crisis.
Sharma, 51, is executive vice president of investment services and global sales.
S&P and Moody's Investors Service didn't downgrade bonds backed by subprime loans until July, when many had lost more than 50 cents on the dollar, Bloomberg reported.
'We may see more management shuffles in the coming months amid charges the ratings agencies have been asleep at the switch,' said Tim Condon, head of research at ING Groep NV in Singapore, was quoted as saying.
Standard & Poor's president replaced amidst mortgage crisis
Aug 31, 2007, 15:47 GMT
New York - In what will likely be a series of management shuffles in the wake of the escalating US mortgage and credit crisis, Standard & Poor's Friday named Deven Sharma to replace Kathleen Corbet as president.
The company has been criticized by lawmakers and investors for its failure to anticipate the risks of securities backed by subprime mortgages, Bloomberg financial news service reported.
Subprime mortgages are issued by financial companies, not by banks, to risky borrowers at initial low-interest rates. But interest rates on such loans then rapidly rise, putting the monthly payments out of reach for the borrowers.
McGraw-Hill Cos, the parent of Standard & Poor's, said in a statement that Corbet, 47, resigned to spend more time with her family and not because of the roiling credit crisis.
Sharma, 51, is executive vice president of investment services and global sales.
S&P and Moody's Investors Service didn't downgrade bonds backed by subprime loans until July, when many had lost more than 50 cents on the dollar, Bloomberg reported.
'We may see more management shuffles in the coming months amid charges the ratings agencies have been asleep at the switch,' said Tim Condon, head of research at ING Groep NV in Singapore, was quoted as saying.