ratings-agencies-defend-their-actions

Ratings agencies defend their actions

A top executive from Moody's says investors were warned in 2006 about the increased risk in certain kinds of credit transactions.
In late September, the credit ratings agencies were dragged before United States congressional hearings to answer questions about what role they played in the subprime mess unfolding in America.

The gist of the hearings was questioning whether agencies such as MoodyÆs, Standard PoorÆs and Fitch perhaps improperly inflated their ratings of mortgage-backed securities because of possible conflicts of interest. After all, the argument goes, the agencies simultaneously rated various mortgage-backed securities while offering advice to investment firms about how to package them so as to gain higher credit ratings.

While executives defend themselves in the US, there is also a fleet of top people from these agencies meeting with journalists in Asia hoping to...
¬ Haymarket Media Limited. All rights reserved.

FinanceAsia has updated its subscription model.

Registered readers now have the opportunity to read 5 articles from our award-winning website for free.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team subscription (2-5 users), or office-wide licences.

To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222

Article limit is reached.

Hello! You have used up all of your free articles on FinanceAsia.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team subscription (2-5 users), or office-wide licences. To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222