Moody's stock falls on word of SEC probe

[Newsjock]

Source: McClatchy Newspapers

While the Dow Jones Industrial Average rose almost 4 percent Monday, share prices for Moody's Corp. tumbled 7.19 percent as investors digested confirmation of a Securities and Exchange Commission investigation into the credit-rating agency.

... In a quarterly report filed late Friday to the SEC, Moody's quietly disclosed that its Wall Street Analytics unit is cooperating with an investigation by the SEC and the Department of Justice into "certain financial institutions" and the valuations used in "certain financial instruments."

A Moody's spokesman declined to discuss the companies involved in the probe or whether one is Goldman Sachs, whose complex products rated by Moody's were the subject of recent congressional hearings.

... Moody's also confirmed that it received a "Wells Notice" from the SEC on March 18 notifying the company that it's the subject of a probe and faces a staff-recommended administrative cease-and-desist order.

The SEC thinks the error in the European ratings rendered Moody's application in June 2007 to register as a nationally recognized statistical organization "false and misleading."

Read more: http://www.mcclatchydc.com/2010/05/10/93858/moodys-stock-falls-on-word-of.html

[Ruby the Liberal]

1. Ironically, both the CEO of Moody's & investor Warren Buffet dumped stock on March Wells Notice

CEO was "scheduled". Buffet should be investigated.

http://www.businessinsider.com/moodys-ceo-dumped-stock-sec-wells-notice-2010-5

[Po_d Mainiac]

2. The SEC might have given up the porn long enough to go after Moody's

But since they pretty much indicted themselves, they are the fruit that can be picked from the missionary position...Buffet on the other hand has the GS wall he can hide behind

[Ruby the Liberal]

3. Yanno, I am happy to see an SEC with teeth. Bring on the indictments.

(otherwords, glad to see them actually EARNING their cheques).

[prairierose]

5. Finally...n/t

[Po_d Mainiac]

6. I agree

But, a "Wells Notice" is just a Hallmark card....I want Mr Holder to enter the fray
:FRSP:

[Ruby the Liberal]

7. +1

[liberation]

8. But... But... But... Buffet is a good guy, look he looks like an affable old grandpa!

And he says all those awesome things, even though he always ends up doing the opposite... but who cares about that, doesn't he just look adorable. There is no way he could possibly be in the wrong. He earned all those billions of dollars moving money around the old fashion way, by... uh... moving all that cash manually on a wheelbarrow and with divine providence. Yeah....

[liberation]

9. du...du...dupe

sorry about that

[Capt. Jack]

4. They should all go down the drain!

ALL the ratings agencies are fraudulent criminal racketeers.

Beginning with the appraisal on your home!

[jpak]

10. good - and overdue

yup