Sunday, October 26, 2008

Ratings Agencies


IS THIS A SICK JOKE? Code of conduct?

Standard & Poor’s is a leading provider of financial market intelligence. The world’s foremost source of credit ratings, indices, investment research, risk evaluation and data, Standard & Poor’s provides financial decision-makers with the intelligence they need to feel confident about their decisions.

Well, it looks like the last few pieces of the Housing Bubble puzzle are coming together. I'm sure you've all read the articles and watched the congressional hearings on the ratings agencies. What is truly fascinating about their actions is that their sole purpose for existing is to ACCURATELY and ETHICALLY assess quality and risk of financial obligations.

2008-10-22: Moody's, S&P Employees Doubted Ratings
"Let's hope we are all wealthy and retired by the time this house of cards falters,'' one e-mail from an S&P employee said.

"It seems to me that we had blinders on and never questioned the information we were given.. Combined, these errors make us look either incompetent at credit analysis, or like we sold our soul to the devil for revenue.''

No comments: