Rating Agencies Exposed For Helping To Create 2008 Financial Crisis

By: Monday June 24, 2013 8:13 am

Visit NBCNews.com for breaking news, world news, and news about the economy As Wall Street alumni Attorney General Eric Holder and Criminal Division head Lanny Breuer slept, private law firms took Wall Street to court. Through the lawsuits filed we have learned that the rating agencies, Moody’s and S&P, were well aware that what they [...]

Moody’s Follows Other Rating Agencies Into Incoherence About Fiscal Cliff

By: Tuesday September 11, 2012 10:53 am

Good to know that the credit rating agencies have learned approximately nothing since last year. Then, they initiated a downgrade of the United States, determining that their debt would be a riskier instrument after the debacle of the debt limit deal. Investors responded by pouring money into US Treasuries and dropping the yields at one [...]

Polish Foreign Minister Pleads With Germany to Do Something

By: Tuesday November 29, 2011 6:57 am

Europe is showing signs of failure. Credit has become hard to secure for businesses, as banks conserve cash. Banks are keeping capital on reserve, unsure of how the crisis will play out. Economic forecasts are plunging for both Europe and the rest of the world. The EFSF, the bailout fund once seen as the savior [...]

The Republican 99:1 Ratio on Deficit Reduction

By: Wednesday November 2, 2011 10:56 am

The Super Committee continues to meet and pretend like they’re going to come up with an end product in three weeks. We’ve learned a bit more about the Republican offer. We know that the Democrats’ plan was no great shakes, but needless to say, the Republican plan is worse, particularly in the area of revenues. [...]

Moody’s Downgrades BofA, Other Banks

By: Wednesday September 21, 2011 1:14 pm

The market didn’t like the Federal Reserve’s “Operation Twist” plan. I don’t quite know what else they were expecting, but the market fell pretty hard on the news. Long-term Treasuries were down and short-term yields were up, which is precisely what Operation Twist is meant to achieve. Now we’ll see if it translates into any [...]

Other Rating Agencies Implicated in DoJ Mortgage Bond Probe

By: Friday August 19, 2011 10:10 am

It turns out that the Justice Department is not only concerned with Standard and Poor’s but the entire credit rating agency industry, it appears. The reported investigation into the ratings of mortgage backed securities during the housing bubble is centered on S&P, but not limited to them: The probe by lawyers in the Justice Department’s [...]

Gang of Six Boosted By Moody’s

By: Wednesday July 20, 2011 6:50 am

As near as I can tell, the only thing the Gang of Six has made more likely is default. It’s essentially the same deal that Eric Cantor and John Boehner rejected because it included tax increases. Maybe the increases are so vague and the abolition of the alternative minimum tax so attractive that this changes [...]

Moody’s Threatens Downgrade If Impasse on Debt Limit Not Broken Soon

By: Friday June 3, 2011 7:20 am

I wasn’t a big believer in Standard and Poor’s threatened downgrade of US debt. I don’t think a whole lot of the Moody’s threat either. But at some point, perception becomes reality. This was always the hazard of this game of chicken on the debt limit. At some point, it doesn’t matter if that is [...]

Proper Reaction to S&P Credit Downgrade Threat: Bursting Out Laughing

By: Tuesday April 19, 2011 7:25 am

Dave Lindorff managed to scrounge up the best quote from an economist in reaction to S&P’s threatened US credit downgrade: At least one economist burst out laughing on hearing about the S&P announcement. “They did what?” exclaimed James Galbraith, a professor of economics at the University of Texas in Austin, who formerly served as executive [...]

Moody’s: TBTF Still Operative

By: Friday June 4, 2010 8:10 am

Shahein Nasiripour reports that one of the major investor services has concluded that the Wall Street reform bill will not end the practice of “too big to fail,” because mega-financial firms will still remain interconnected, and resolution authority will probably not be able to untangle all the domestic and international obligations in enough time to [...]

In Enlightening FCIC Hearings, Rating Agencies and Derivatives Assailed

By: Wednesday June 2, 2010 3:09 pm

The Financial Crisis Inquiry Commission has been something of a disappointment, but today’s hearing on credit rating agencies yielded at least two nuggets of great information. First, there was this testimony from a former top director at Moody’s, one of the three big kahnuas in the rating agency world: Eric Kolchinsky, a managing director overseeing [...]

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