TV News LIES

Friday, Aug 22nd

Last update03:30:12 AM GMT

You are here News Economy Ex-Moody's exec: Ratings agencies corrupt

Ex-Moody's exec: Ratings agencies corrupt

E-mail Print PDF

Mary Schapiro, Moody CE)U.S. credit-ratings agencies have conflicts of interest because they're paid by firms they're supposed to rate neutrally, an ex-Moody's Corp. executive said.

"This conflict of interest permeates all levels of employment, from entry-level analyst to the chairman and chief executive officer of Moody's Corp.," William Harrington, a former Moody's Investors Service derivative products senior vice president, said in a filing to the U.S. Securities and Exchange Commission, which is considering new rules to reform the agencies.

Agency analysts are pressured through a culture of "intimidation and harassment" to give clients the ratings they want out of fear the clients will otherwise fire the agency and take their business to another one, Harrington said in a 78-page "comment" submitted to the SEC Aug. 8.

Moody's is one of the three central credit-rating companies in the United States, along with Standard & Poor's Financial Services and Fitch Ratings. Their job is to provide an objective analysis of the risk posed to investors by bonds, companies and countries.

More...


Most Recent Related Stories...


BofA in $16.5 billion deal with U.S. over mortgage bonds

Bank of AmericaBank of America Corp is expected to pay more than $16.5 billion to end investigations into...

Cisco to cut another 6,000 jobs as forecast falls flat

Cisco layoffsCisco Systems Inc (CSCO.O) forecast tepid current-quarter results and said it plans to cut another 6,000...

Labor sharks sink teeth into low-wage immigrant workers

Wage theftWhen Ophelia Hernández, a 53-year-old clothing store owner from El Salvador, got working papers to come...

Report: 18 firms hold a third of US wealth

major corporations in USIncome inequality is a hot political topic and a report showing that a small number of...
 
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!