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Credit-Rating Companies `Sold Our Soul' for Pay, Employees Said

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Purveyor Donating Member (1000+ posts)  Journal Click to send private message to this author Click to view this author's profile Click to add this author to your buddy list Click to add this author to your Ignore list Wed Oct-22-08 03:50 PM
Original message
Credit-Rating Companies `Sold Our Soul' for Pay, Employees Said
Source: Bloomberg

Oct. 22 (Bloomberg) -- Employees at Moody's Investors Service told executives that issuing dubious creditworthy ratings to mortgage-backed securities made it appear they were incompetent or ``sold our soul to the devil for revenue,'' according to e-mails obtained by U.S. House investigators.

The e-mail was one of several documents made public today at a hearing of the House Oversight and Government Reform Committee in Washington, which is reviewing the role played by Moody's, Standard & Poor's and Fitch Ratings in the global credit freeze.

``The story of the credit rating agencies is a story of colossal failure,'' Committee Chairman Henry Waxman, a California Democrat, said at the hearing. ``The result is that our entire financial system is now at risk.''

--snip
The Securities and Exchange Commission in a July report found the credit-rating companies improperly managed conflicts of interest and violated internal procedures in granting top rankings to mortgage bonds.

An e-mail that a S&P employee wrote to a co-worker in 2006, obtained by committee investigators, said, ``Let's hope we are all wealthy and retired by the time this house of cards falters.''

Read more: http://www.bloomberg.com/apps/news?pid=20601087&sid=ac8...
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   Replies to this thread
   another example of the Republican ethos -- when they look in the mirror, do they see Dana Perino?  Supersedeas   Oct-22-08 03:55 PM   #1 
   A repeat of Enron  Tempest   Oct-22-08 04:43 PM   #2 
   A LOT of fucking criminals made a LOT of money at OUR expense  DainBramaged   Oct-22-08 05:00 PM   #3 
   the hearing today was interesting.....the panelists were under heavy fire  Gin   Oct-22-08 05:34 PM   #4 
   "``We have learned important lessons from these fast-changing market conditions,''  brentspeak   Oct-22-08 05:43 PM   #5 
   The lessons they learned were how to steal faster  DainBramaged   Oct-22-08 06:34 PM   #6 
   Important. k&r n/t  Laelth   Oct-22-08 09:39 PM   #7 
 
Supersedeas (1000+ posts)  Journal Click to send private message to this author Click to view this author's profile Click to add this author to your buddy list Click to add this author to your Ignore list Wed Oct-22-08 03:55 PM
Response to Original message
1. another example of the Republican ethos -- when they look in the mirror, do they see Dana Perino?
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Tempest (1000+ posts) Click to send private message to this author Click to view this author's profile Click to add this author to your buddy list Click to add this author to your Ignore list Wed Oct-22-08 04:43 PM
Response to Reply #1
2. A repeat of Enron

How much more is the American public going to take?
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DainBramaged Donating Member (1000+ posts)  Journal Click to send private message to this author Click to view this author's profile Click to add this author to your buddy list Click to add this author to your Ignore list Donate to DU! Wed Oct-22-08 05:00 PM
Response to Original message
3. A LOT of fucking criminals made a LOT of money at OUR expense
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Gin Donating Member (1000+ posts) Click to send private message to this author Click to view this author's profile Click to add this author to your buddy list Click to add this author to your Ignore list Donate to DU! Wed Oct-22-08 05:34 PM
Response to Reply #3
4. the hearing today was interesting.....the panelists were under heavy fire
from Congress....too little too late...but was good theater anyway.
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brentspeak Donating Member (1000+ posts) Click to send private message to this author Click to view this author's profile Click to add this author to your buddy list Click to add this author to your Ignore list Wed Oct-22-08 05:43 PM
Response to Original message
5. "``We have learned important lessons from these fast-changing market conditions,''
The only lessons that should be learned are that 1) Moody's and S&P executives should be brought up on charges; 2) both credit-rating companies should be barred from doing any more business. Time to start anew.
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DainBramaged Donating Member (1000+ posts)  Journal Click to send private message to this author Click to view this author's profile Click to add this author to your buddy list Click to add this author to your Ignore list Donate to DU! Wed Oct-22-08 06:34 PM
Response to Reply #5
6. The lessons they learned were how to steal faster
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Laelth Donating Member (1000+ posts)  Journal Click to send private message to this author Click to view this author's profile Click to add this author to your buddy list Click to add this author to your Ignore list Wed Oct-22-08 09:39 PM
Response to Original message
7. Important. k&r n/t
:dem:

-Laelth
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