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Moodys Under Investigation For Misrepresenting Truth

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http://finance.yahoo.com/news/Moodys-accus...set=&ccode=

Moody's accused of issuing inflated ratings: report

On Wednesday September 23, 2009, 3:07 am EDT

(Reuters) - A former analyst with Moody's Corp (NYSE:MCO - News) has accused the credit ratings agency of issuing inflated ratings, and has taken his concerns to U.S. congressional investigators, the Wall Street Journal reported on Wednesday.

Who can you trust now'r days? Banksters, EAs, rating agencies, MPs, Attorney Generals--all crooks.

Almost everyone is a scammer and a crook. Moodys may well have been paid millions to award favourable ratings.

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http://finance.yahoo.com/news/Moodys-accus...set=&ccode=

Moody's accused of issuing inflated ratings: report

On Wednesday September 23, 2009, 3:07 am EDT

(Reuters) - A former analyst with Moody's Corp (NYSE:MCO - News) has accused the credit ratings agency of issuing inflated ratings, and has taken his concerns to U.S. congressional investigators, the Wall Street Journal reported on Wednesday.

Who can you trust now'r days? Banksters, EAs, rating agencies, MPs, Attorney Generals--all crooks.

Almost everyone is a scammer and a crook. Moodys may well have been paid millions to award favourable ratings.

Interesting so were these inflated or just an attempt to get it right ?

Moody’s downgrades building societies

By Jane Croft, Retail Banking Correspondent

Published: April 15 2009 22:08 | Last updated: April 15 2009 22:08

Nine building societies, including Nationwide, have been downgraded by Moody’s amid concerns about their exposure to falling house prices and specialist mortgage loans.

The ratings agency said it had made the downgrades after stress testing how mutuals would perform against a base case scenario of a 40 per cent fall in house prices from the peak of the boom. It also stress-tested a more extreme scenario based on a 60 per cent fall.

Some societies have been downgraded by three notches, making it tougher and more expensive for them to raise or roll over funding in the wholesale markets – although all mutuals rely primarily on retail deposits to fund themselves.

It is also possible that some societies will find it harder to attract deposits from local councils or small pension funds which may only invest money in banks or building societies with an A grade credit rating.

Moody’s said it had changed its assumptions about UK house prices in the past few months. It also stress-tested the mutuals’ commercial loan portfolios, where it expects the performance to worsen during the next few years.

Marjan Riggi of Moody’s said: “What’s different is the loss expectation is higher than it was three or four months ago looking at the economic forecasts on housing.

“Last year we were looking at mortgage lenders and stress-testing a 25 per cent fall in house prices. In the past three or four months that assumption has changed to a 40 per cent fall, which is a considerable difference.â€On Wednesday Adrian Coles, director-general of the Building Societies Association, said Moody’s had included an extreme stress test of a 60 per cent fall in house prices,

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Moodys got it wrong? DOING.

didnt both those ponzi guys in the US have AAA rated banks or brokers?

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"“Last year we were looking at mortgage lenders and stress-testing a 25 per cent fall in house prices. In the past three or four months that assumption has changed to a 40 per cent fall, which is a considerable difference"

I guess they should've stuck with the former

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"“Last year we were looking at mortgage lenders and stress-testing a 25 per cent fall in house prices. In the past three or four months that assumption has changed to a 40 per cent fall, which is a considerable difference"

I guess they should've stuck with the former

50% is even more considerabler.

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Almost everyone is a scammer and a crook. Moodys may well have been paid millions to award favourable ratings.

It's not clear what your complaining about. If Heinz pays an advervtising agency to convince people that their ketchup is better than most, are the advertisers crooks?

If a bank pays Moodys to help sell their bonds, does that make Moodys crooks? Everyone knows the banks pay for the ratings.

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The entire system is to blame, the BOE and FSA and Basel I and II all rely on ratings.

They make sense sometimes but for instance under Basel I Soverign debt amongst OECD would be 0% risk and under

Basel II it could be 20% for a downgrade for AAA+. Which depends on at least three ratings agencies although

seeing as there are only three available and they swap staff all the time is a bit pointless.

The system works, the ratings agencies are not liars but the bias they can shift is immense, resulting in a

corrupted regulatory system, which even central banks like in our case the BOE rely on.

Edited by Three Pint Princess 2

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It's not clear what your complaining about. If Heinz pays an advervtising agency to convince people that their ketchup is better than most, are the advertisers crooks?

If a bank pays Moodys to help sell their bonds, does that make Moodys crooks? Everyone knows the banks pay for the ratings.

yes its criminal....its false representation from an official body...one that firms rely on...boards decide they wont invest unless a prospect is AAA.....

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It's not clear what your complaining about. If Heinz pays an advervtising agency to convince people that their ketchup is better than most, are the advertisers crooks?

If a bank pays Moodys to help sell their bonds, does that make Moodys crooks? Everyone knows the banks pay for the ratings.

Err... That depends if they say things that are not true.

http://www.passprotect.studio400.me.uk/Mis...on_Act_1967.PDF

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