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Credit Rating Agencies Triggered Financial Crisis, U.S. Congressional Report Finds

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sasha031 Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Apr-13-11 11:11 PM
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Credit Rating Agencies Triggered Financial Crisis, U.S. Congressional Report Finds
WASHINGTON (Reuters) - Moody's Corp and Standard and Poor's triggered the worst financial crisis in decades when they were forced to downgrade the inflated ratings they slapped on complex mortgage-backed securities, a U.S. congressional report concluded on Wednesday.

In one of the most stark condemnations of the credit rating agencies, a Senate investigations panel said the agencies continued to give top ratings to mortgage-backed securities months after the housing market started to collapse.


The agencies then unleashed on the financial system a flood of downgrades in July 2007, the panel said.

``Perhaps more than any other single event, the sudden mass downgrades of (residential mortgage-backed securities) and (collateralized debt obligation) ratings were the immediate trigger for the financial crisis,'' the staff for Senators Carl Levin and Tom Coburn wrote in their report.


http://www.huffingtonpost.com/2011/04/13/credit-rating-...
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DCKit Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Apr-13-11 11:34 PM
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1. The problem began when they gave those craptastic, bullshit, imaginary investment vehicles...
AAA ratings. Not when they got all honest.
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Rex Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Apr-13-11 11:40 PM
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2. So they fixed prices to help benefit stock holders?
Then later shit on homeowners? That about right?
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Canuckistanian Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Apr-13-11 11:42 PM
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3. And the indictments start when?
I must have missed that part of the recommendations.
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rufus dog Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Apr-13-11 11:43 PM
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4. So the agencies that have ratings oversight on US bonds
can manipulate the market at best case. They could also leverage the elected government!
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Amonester Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Apr-13-11 11:45 PM
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5. So? (When will these bandits be served True Justice?)
crickets (I guess... as usual.)
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