Credit Rating Agencies questioned before Congress
Finally! Some tough questions for the CEOs of the big three: Moody’s, Standard & Poor’s, and Fitch, the credit rating agencies that many feel are ultimately responsible for the sub-prime crisis and ensuing meltdown on Wall Street. For a little background, see my previous post questioning who is to blame for the sub-prime crisis.
As Jeff Macke says of these agencies on CNBC, “they should be taken out and annihilated…they are bringing economy around the globe down”.
Simply stated, the ratings agencies did not do their job. They are the symbols of trust and credibility to a giant industry that spans the globe, and they have failed. When will someone be punished for this amazing lack of common sense? Not everyone that works for one of these companies is to blame, but the fact remains that the companies made money by bestowing AAA ratings on suspect mortgage-backed-securities (MBS). For an example of how ridiculous this behavior became, check out this article.
Looking for a scapegoat to blame for your declining retirement savings? Here are three:
Raymond McDaniel, Moody’s CEO
Stephen Joynt, Fitch CEO
Deven Sharma, Standard & Poor’s President
