Politics

Senate Banking Committee probing S&P downgrade

The U.S. Senate Committee on Banking is probing Friday’s decision by Standard & Poor’s to downgrade America’s credit rating.

According to Reuters, an aide said the panel was gathering information about the S&P move, but so far no decision had been made on whether it will hold hearings on the issue. (RELATED: Clyburn: Downgrade a ploy to improve S&P’s standing in Europe)

Senate Banking Committee Chairman Tim Johnson, a South Dakota Democrat, railed against S&P’s decision in a statement released today.

“As the financial markets stumble, investors continue to regard Treasury debt as a safe haven in times of economic uncertainty,” Johnson said.

“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,” he added, “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.”