Menu Close
Posted in Money Morning, Other Guys

New Evidence Shows Ratings Agencies’ Corruption Played Key Role in Subprime Crash – Money Morning

This is a syndicated repost courtesy of Money Morning - Only the News You Can Profit From. To view original, click here. Reposted with permission.

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.”

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.

Rolling Stone has the full story here…

Wall Street Examiner Disclosure: Lee Adler, The Wall Street Examiner reposts third party content with the permission of the publisher. The opinions expressed in these reposts are not those of the Wall Street Examiner or Lee Adler, unless authored by me, under my byline. I curate posts here on the basis of whether they represent an interesting and logical point of view, that may or may not agree with my own views. Some of the content includes the original publisher's promotional messages. No endorsement of such content is either expressed or implied by posting the content. All items published here are matters of information and opinion, and are neither intended as, nor should you construe it as, individual investment advice. Do your own due diligence when considering the offerings of information providers, or considering any investment.

Related Posts

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.