John B. Chambers, former leader of the powerful committee at Standard & Poor’s, faced serious threats after stripping the United States of its AAA credit rating in 2011.
The decision: In 2011, the creditworthiness committee at S&P chose to lower the U.S. credit rating from AAA to AA+ due to concerns about government divisions and decision-making.
* The U.S. economy had held a AAA rating from all three major rating agencies—Fitch, Moody’s, and S&P—for decades.
* The downgrade decision followed tense negotiations on raising the nation’s debt limit.
Market impact: The announcement of the downgrade fueled a global sell-off, with the Dow Jones Industrial Average dropping more than 600 points and the Nasdaq closing 6.9% lower.
Facing threats: Chambers experienced a massive backlash for the decision, receiving hate mail and serious threats which led to the implementation of security measures like having a bodyguard while walking his dog.
* The Obama administration strongly criticized S&P’s decision and questioned its methodology.
Looking back: Chambers believes political polarization has worsened since the downgrade, and he worries that the U.S. is squandering its economic supremacy due to its ongoing political divisions.
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