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Moody's Finance Chief Sued By Investor Over Subprime Ratings


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Moody's Corp. Chief Financial Officer Linda Huber was sued by an investor who said Huber failed to disclose that Moody's assigned ``excessively'' high ratings to bonds backed by subprime mortgages.

http://www.bloomberg.co.uk/apps/news?pid=2...p;refer=finance

haha i see lawyers rubbing their hands now, seems like everyone is about to sue everyone. :lol:

At the same time they will suffer losses since lenders go to agencies that still give the nice ratings. :lol:

http://www.bloomberg.com/apps/news?pid=new...id=ajYTvHxyhnnM

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These credit rating firms just can't be trusted because they are paid by the Investment Banks to grade and there is a conflict of interest. .Down- grading any investment vehicle can end up sinking it so the ratings agencies hands are somewhat tied.

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As I have been saying for some time the last person holding the securitisation baby will try and wriggle out of it and it may well all come back to the bank who lends to make good the defaults.The big fear is that the highly leveraged Collateralised Debt Obligation derivatives will unwind and the trail will lead to there being no real money at all.

Edited by crashmonitor
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Read the disclaimers:

Moody's: "Moody's has no obligation to perform, and does not perform, due diligence."

S&P: “Any user of the information contained herein should not rely on any credit rating or other opinion contained herein in making any investment decision.”

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As I have been saying for some time the last person holding the securitisation baby will try and wriggle out of it and it may well all come back to the bank who lends to make good the defaults.The big fear is that the highly leveraged Collaterised Debt Obligation derivatives will unwind and the trail will lead to there being no real money at all.

Could be our pension funds!

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Could be our pension funds!

Really? Only if you are final salary. If so tough sh*t. You have probably been smug about it.

If you are money purchase then you choose where to invest and if you chose to invest in this well again tough shit.

No offence intended.

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Just read the lead in today's Business Telegraph.''the incoming chief executive of the FSA has warned a number of banks and other financial institutions operating in the UK that they may not have done enough to protect themselves and their investors''...further on it says..''The FSA is keeping what chairman Sir Callum McCarthy has said is a close and continuous eye on credit markets,in particular instruments such as CDOs.(ie. the sub prime bonds referred to at the start of this thread)

S**t sounds serious,Gold anyone. :ph34r:

Edited by crashmonitor
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If you are money purchase then you choose where to invest...

How detailed of a choice can you make? Is your pension fund telling you that their bonds or property section contains

MBSs, CDOs and other 'toxic waste'? The descriptions I get from mine are so general, that I have no clue what they

are actually invested in.

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How detailed of a choice can you make? Is your pension fund telling you that their bonds or property section contains

MBSs, CDOs and other 'toxic waste'? The descriptions I get from mine are so general, that I have no clue what they

are actually invested in.

I have choice of practically all funds much in the same way as SIPP. you can then check out sites like iii or trustnet to review what they hold

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I have choice of practically all funds much in the same way as SIPP. you can then check out sites like iii or trustnet to review what they hold

Hey, useful info that. Thanks. I just checked my SIPP funds on trustnet and they seem to be in a fairly solid stuff. My IFA set it all up, all she said to me was: on a scale of 1 to 10 how much risk do you like? (I said 3.)

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  • 443 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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