Strangest thing to see the SEC FINALLY get off their duffs and do a bit of work. Your government at work folks. Investigating how Moody's and S&P gamed the system and lost billions for investors AFTER the fact, is, well, incompetent at best and corrupt at worst.
The ratings agencies were employed by CDO bundlers to rate the toxic mortgage CDO bundles. The better the rating, the more work they got, the more they got paid.
Triple A!!! AAA!!!! Safest investment on the planet!!!! (Now pay us)
Man, after China and governments around the world realize how bad they got schooled in this mess, they're gonna be PISSED!!! Too bad they didn't read HousingPANIC...
SEC looks at ‘influence’ in credit ratings
The SEC is investigating whether issuers and underwriters of residential mortgage-backed securities “unduly influenced” credit-ratings agencies to give them higher ratings than warranted, SEC Chairman Christopher Cox said today at a Senate Banking Committee hearing.
The agencies have blamed the unexpectedly large incidence of mortgage delinquencies in the last year on factors including fraud in mortgage originations, deterioration of loan underwriting standards and a faster-than-anticipated adoption of more restrictive lending standards, which made it difficult for overleveraged borrowers to refinance, he said.