Old Message Board
How Moody's sold its ratings - and sold out investors
Posted: 7/19/2010 7:19:13 AM
By: Ratings for Sale
"A McClatchy investigation has found that Moody's punished executives who questioned why the company was risking its reputation by putting its profits ahead of providing trustworthy ratings for investment offerings.
Instead, Moody's promoted executives who headed its "structured finance" division, which assisted Wall Street in packaging loans into securities for sale to investors. It also stacked its compliance department with the people who awarded the highest ratings to pools of mortgages that soon were downgraded to junk. Such products have another name now: "toxic assets."
Read more: http://www.mcclatchydc.com/2009/10/18/77244/how-moodys-sold-its-ratings-and.html#ixzz0u81IiWVk
Read more: http://www.mcclatchydc.com/2009/10/18/77244/how-moodys-sold-its-ratings-and.html#ixzz0u80z2XCd