Mounds upon mounds of corruption were at the root of the subprime financial crisis.
Our hatred of the fat cat bankers who made millions off of predatory loans, and the lazy regulators, who did nothing about it and even enabled it, knows no bounds. Even more infuriating is the lack of consequences for what they did.
But somehow, a key player has managed squeak by – until now. As a result of 2 major lawsuits, incriminating documents have been piling up that prove – without a doubt – that ratings agencies like Moody’s and S&P played a *huge* part in the scam.
Turns out that for years, Moody’s and S&P have been “shameless tools for the banks, willing to give just about anything a high rating in exchange for cash.”
Liquidity moves markets!Click here to learn how you can follow the money.
One email from a S&P exec reads, “Lord help our f****ing scam…this has to be the stupidest place I have worked at.” Another reads, “If we are just going to make it up in order to rate deals, then quants [quantitative analysts] are of precious little value.”
So much for integrity, the very concept these ratings agencies supposedly stand for.
Wall Street Examiner Disclaimer: The Wall Street Examiner reposts third party content with the permission of the publisher. I curate these posts on the basis of whether they represent an interesting and logical point of view, that may or may not agree with my own views. No promotional consideration has been offered or accepted. The opinions expressed in these reposts are not those of the Wall Street Examiner or Lee Adler and no endorsement of the content so provided is either expressed or implied by our posting the content. Some of the content includes the original publisher's promotional messages. The Wall Street Examiner is not familiar with the services offered and makes no endorsement or recommendation regarding them. Do your own due diligence when considering the offerings of third party providers.