TV News LIES

Saturday, Apr 21st

Last update05:20:13 AM GMT

You are here News Economy Moody's bungled ratings on community bank bonds, too

Moody's bungled ratings on community bank bonds, too

E-mail Print PDF

Raymond McDaniel, Moody CEOBillions of dollars in top-rated bonds backed by community banks have gone bust, debunking the defense offered by credit-rating agencies that wildly inaccurate ratings were limited to risky mortgage bonds that imploded and then triggered the U.S. financial crisis.

Government regulators and lawyers across the country are examining how credit-rating agencies came to bless as "investment grade" the now-toxic bonds made up of special securities issued by community bank holding companies.

During the go-go years preceding the December 2007 start of the worst modern recession, more than $50 billion of these special securities were floated by community banks and pooled into complex instruments called collateralized debt obligations, or CDOs.

From 2000 to 2008, Moody's Investors Service rated at least 103 of them, valued at $55 billion, issued by banks, insurance companies and real estate investment trusts.

Today, many of these securities are virtually worthless.

More...


Most Recent Related Stories...


Wells Fargo slammed with $1B fine

Wells Fargo Federal regulators slapped Wells Fargo with a $1 billion fine on Friday over customer abuses in...

Richest 1% on target to own two-thirds of all wealth by 2030

Richest 1% on target to own 2/3 of world's wealth by 2030 The world’s richest 1% are on course to control as much as two-thirds of the world’s...

China's Xi renews vow to open economy, cut tariffs as U.S. trade row deepens

China's Xi vows to open eonomy, cut tariffsChinese President Xi Jinping promised on Tuesday to open the country’s economy further and lower import...

Fed Raises Interest Rates for Sixth Time Since Financial Crisis

Jerome H. Powell The Federal Reserve raised interest rates on Wednesday by a quarter of a percentage point and...
 
America's # 1 Enemy
Tee Shirt
& Help Support TvNewsLIES.org!
TVNL Tee Shirt
 
TVNL TOTE BAG
Conserve our Planet
& Help Support TvNewsLIES.org!
 
Get your 9/11 & Media
Deception Dollars
& Help Support TvNewsLIES.org!
 
The Loaded Deck
The First & the Best!
The Media & Bush Admin Exposed!