S&P president steps down

Amid a Justice Department inquiry into ratings on mortgage-backed securities, the president of Standard & Poor’s announced he would step down by the end of this year. The investigation got underway prior to the downgrading of U.S. bond debt by the ratings agency earlier this month.

The ratings agency might not be the only one in trouble these days; investors panicked on Monday on news that Goldman Sachs CEO Lloyd Blankfein had hired outside lawyers.

Some good economic news came on the banking front, where a tally of U.S. banks in danger of failure posted its first decline since the start of the 2008 financial crisis.

Meanwhile, a survey of European economies found growth at a near standstill, but experts continue to hold off on calling the start of a double-dip recession. Examination of data from the Philadelphia Federal Reserve Bank, however, suggests a recession is already underway.

Many economists are starting to point to housing as the lynchpin in formulating a true economic recovery. A recent New York Times editorial points to the need to help owners stay in their homes by restructuring payment schedules.

With gold surging to yet another record high, investors will certainly need some coaching through the turbulent times. Your job’s hard right now, but it is an opportunity to make connections with your most engaged clients. And, as this Canadian Business blogger points out, it’s not where the markets have been, but where they’re going that truly matters.

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.