The second-largest credit-ratings company, Moody’s, removed the head of structured finance unit because of violations of internal rules in assigning Aaa ratings to last year’s worst performing securities. According to Moody’s, rules were breached for ranking European “constant proportion debt obligations”, or CPDOs.
This move takes some of the pressure off of Moody due to ratings inequities. They have gone after employees that improperly promoted investments claiming that Moody’s is blameless for employee misconduct.
Meanwhile, regulators in the U.S. and Europe are enhancing regulations for ratings agencies. Investors in Moody CDPOs lost as much as 80% of their investment over the course of recent time.
This crime of self-interest is the tip of the iceberg in tracking down the out-of-control banking and finance industry.
Busted: Bankers and The Global Economy 
Why is there nobody laying criminal charges? If I put a label ‘fish’ on chicken meat, I’ll get busted. Until such time that the rating agnencies are suspended from trading, no real improvement is in sight as we need to start from scratch and with the rating agencies still in the frame, the system will remain tainted.
One first step could be to simply cease doing business with these shonky companies. That’s as American as apple pie!
Comment by Ally Hauptmann — October 24, 2008 @ 8:25 pm