Thursday, Aug 16, 2007
Time to sniff out complicity and fraud?
FT.com: Rating agencies hit by subprime probe
The European Commission is to investigate credit ratings agencies amid growing dismay over their slow response to the subprime mortgage crisis.
Officials in Brussels, and many other critics, believe the ratings agencies failed to act quickly enough to warn investors about the risks of investing in securities backed by US subprime mortgages – the sector whose troubles triggered the recent global market volatility.
"A lot of money has been lost and we want to know who gets the can of woopass opened on them" ;)
Posted by dohousescrashinthewoods @ 09:44 AM (362 views) Add Comment
7 Comments
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1. M2 said...
Stable. Door. Horse. Bolted.
2. Orwell said...
Good money for lawyers for poor advice then!
3. Tinecu said...
Twaddle...the ratings in the MBS market started dropping late 2005 as reported by Bloomburg.
4. inbreda said...
Now that things are heading southwards anyway, adjusting the credit ratings will only increase the severity of falls.
FANTASTIC!!!
5. Tommy said...
Risks for seasoned investment professional / financiers in highly leveraged investments SHOULD be known. They have continued to invest other peoples' monies into investments which they have known have been as risky as hell, while making very cosy beds for themselves with remuneration packages not linked to any form of competence. The London Market needs a fundmantal overhaul... or else we will continue to get this over and over again.
6. Bubbles. . . said...
Tommy....Is that why nick Leesons got all his bonuses tucked away in some swedish bank account and some of Barings banks funds too..(probably)..They get paid wether they lose or win...
7. wiltshire said...
"the ratings agencies failed to act quickly enough to warn investors about the risks of investing in securities backed by US subprime mortgages"
How funny. If investors had been reading this site for the past year or so they would have found plenty of warnings about the risks.
Respect to all those posters who have been highlighting this issue for months (and I'm not including myself here because I'm not as sharp as many on here).