Friday, August 19, 2011

That Didn't Take Long

Two major hit pieces on ratings agencies this week. The NRSRO model's days are numbered:

MOODY'S ANALYST BREAKS SILENCE: Says Ratings Agency Rotten To Core With Conflicts, Corruption, And Greed
S&P, Moody’s Mortgage-Security Ratings Are Said to Face U.S. Investigation

"But don't forget, it's me who put you where you are now.
And I can put you back down too."

1 comment :

Boba the IX said...

The first time I heard of Fitch was in !998. S&P & Moody's? Not sure, but probably decades earlier.

So the people (Wall Street) who produce the product (Mortgage Backed Securities) no longer get to hire the rating agencies (Fitch, S&P, Moody's) who grade their product?

I heard there is now a fourth rating agency who is retained by the buyers of the bonds to tell them how it really is! A decade late on this event.

That didn't take long....if you're a redwood tree...