nytimes.com - 3/16/2009
—
Why, more than a year into the global financial crisis, do regulators and investors continue to rely on ratings? No one has been more wrong than Moody’s and S.&P.; >
reuters.com - 3/19/2009
—
reuters.com —
NEW YORK, March 19 (Reuters) - In a
move reflecting widening stress in the U.S. housing market,
Moody's Investors Service on Thursday said it may downgrade $240.7 billion of securities backed by prime-quality "jumbo" U.S. residential mortgages ...
(more)
Moody's may cut $241 billion jumbo mortgage debt
| ...
nytimes.com - 3/18/2009
—
nytimes.com —
In his annual Berkshire Hathaway letter, Warren E.
Buffett recently urged investors to pose tough questions at
the shareholders meeting in May. Here is one on the mind of some Buffett watchers: When are you going to fix Moody’s ? Mr. Buffett, known as ...
(more)
Warren Buffett and the Rating Agencies
ft.com - 3/24/2009
—
ft.com —
General Electric ’s financial health came under renewed
focus on Monday as Moody’s stripped the conglomerate of
the triple-A rating it had held for 42 years and challenged its executives’ pledge that its finance arm would be profitable this year. A ...
(more)
FT.com / Companies / Industrials - Moody’s strips GE of ...
Comments
Blog Reactions
links for 2009-03-16
Economist's View —
Free Larry Summers - TNR
A.I.G. Lists Firms That Got Money From Taxpayers - NYTimes.com
Only You, Dick Daring! - Economic Principals
The Real Scandal of AIG - Robert Reich
Rated F for Failure - NYTimes.com
The Shadow of Depression - Robert J. Samuelson
Rand and Conservatives: A Reminder To Galt Fans - Democratic Strategist
In defense of Amazon’s Mechanical Turk - Language Log
The Ratings Trap
The Big Picture —
... Partnoy’s prescient fears failed to anticipate exactly how devastating the results of the Act would be. It was unconscionably enormous in the scale of its potential for financial Armageddon. Either directly or indirectly, unregulated derivatives trading allowed by CFMA were responsible for the biggest bankruptcies in history. It created the monster that brought down AIG, the world’s largest insurance company.
>
Sources:
Rated F for Failure
JEROME S. FONS and FRANK PARTNOY
NYT, March 16, ...
Related Content
Buffett Is Unusually Silent on Rating Agencies
dealbook.blogs.nytimes.com 3/22/2009 — In his annual Berkshire Hathaway letter, Warren E. Buffett recently urged investors to pose tough questions at the shareholders meeting in May. Here is one that The New York Times's David Segal says is on the mind of some Buffett watchers: When are ...
Moody's Next Epic Fail: "US Remains a Solid AAA Nation"
prudentinvestor.blogspot.com 6/24/2009 — While the currently ongoing two-day meeting of the Federal Open Market Committee (FOMC) is probably not only discussing the state of the US economy but also how to maintain the global attraction status of its only product, Federal Reserve Notes (FRNs) in unlimited amounts which they prefer to ...
Bond Trading Highest Since ‘07
calculatedriskblog.com 2/20/2009 — From Bloomberg: Bond Trading Highest Since ‘07 as Credit Freeze Thaws Corporate bond trading in the U.S. is rising to the highest level in two years, adding to evidence that credit markets are thawing even with stocks off to their worst start since ...
Moody’s Intrinsic Value
widemoatinvesting.wordpress.com 4/10/2009 — 2008 was a tough year for Moody’s Corporation, with free cash flow (FCF) levels falling to 2003 levels, or $450 million. In our previous analysis, we argued that Moody’s economic moat has shrunk over the last couple of years, as its credit ratings for ...
GE's $8 Billion Downgrade Time Bomb
zerohedge.blogspot.com 3/4/2009 — As the market is running on fumes based on some doctored Chinese data, GE keeps probing new depths, hitting another record low of $6.36 at last check. The major concern plaguing the AAA-rated conglomerate today (whose CDS trades at distressed debt ...
Credit Crisis Indicators
calculatedriskblog.com 4/3/2009 — Here is a quick look at a few credit indicators: First, the British Bankers' Association reported that the three-month dollar Libor rates were fixed at 1.166%. The LIBOR was at 1.30% a couple of weeks ago, and peaked at 4.81875% on Oct 10, 2008. This ...
Blaming Moody’s
ritholtz.com 12/7/2008 —
“These errors make us look either incompetent at credit analysis or like we sold our soul to the devil for revenue, or a little bit of both.”
— A Moody’s managing director responding anonymously to an internal management survey, September 2007.
...
California’s Bond Credit Rating Slashed by Moody’s (Update1)
bloomberg.com 7/20/2009 — July 14 (Bloomberg) -- California’s credit rating, the lowest of all U.S. states, was cut for the second time in as many weeks amid lawmakers’ failure to close a $26 billion deficit that left the most-populous state issuing IOUs to creditors. Moody’s ...
Follow WallStreetBlips on Twitter
