Just what did the ratings agencies expect? That they would get off scot-free for giving solid ratings to mortgage-backed and asset-backed securities that ultimately blew up in the sub-prime crisis? The fact that Moody’s, Standard & Poor’s and Fitch are desperately arguing against pending legislation that classes them as “experts” and makes them liable for the ratings they give out seems to imply that they don’t trust their own ability to rate bonds accurately.
The ratings agencies have been criticized for too long for potential conflicts of interest.
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