S&P Gilded Gemstone With Top Grades as U.S. Mortgages Crumbled

S&P Gilded Gemstone With Top Grades as U.S. Mortgages Crumbled

Michael Nagle/Bloomberg

Standard & Poor’s stamped 72 percent of a $1.04 billion collateralized debt obligation called Gemstone VII issued in February 2007 with AAA grades, granting the debt the same gilded credit rating it bestowed on the U.S. government at the time.