Market perceptions of bank creditworthiness undermined by concerns about sovereigns whose debt banks hold.
In another facet of the case, UBS managers during the financial crisis also "inappropriately gave guidance to those employees charged with submitting interest rates, the purpose being to positively influence the perception of UBS's creditworthiness," according to authorities.
"The U.S. risks being forced to incur widespread delays of payments to suppliers and employees, as well as Social Security payments to citizens -- all of which would damage the perception of U.S. sovereign creditworthiness and the economy," the agency added.
It suggests a lower risk of further political brinkmanship around budget policy precipitating another government shutdown or debt ceiling crisis, which would damage the US economy and perceptions of US sovereign creditworthiness.
No proof of creditworthiness.
Now, the S.E.C. will enforce a new standard of creditworthiness.
The financial system, they say, faces a crisis not of creditworthiness, but of liquidity.
Paulson's plan streamlines and simplifies the process by creating rough-and-ready definitions of creditworthiness.
Maria Otero, the fund's president, said her group had a broader definition of creditworthiness.
Since the 1970s, federal statutes and regulations have mandated that debt issuers obtain ratings as evidence of creditworthiness.
"Investors would be expected to identify and to defend to their regulators their own standards of creditworthiness," Mr. Shelby said.
