Riick
Elite Member
- Joined
- Aug 14, 2007
- Professional Status
- Certified Residential Appraiser
- State
- Delaware
LINK
Apparently Moody's, Standard & Poor's -and- Fitch are near an agreement with Cuomo to end an investigation
into the credit-rating companies' role in the subprime-mortgage fiasco
--- Why they gave top grades to subprime-mortgage securities / CDOs.
The agreement may give them incentive to do the right thing:
"The ratings companies would be paid by bond issuers for any preliminary work reviewing the structure of U.S. subprime- mortgage securities..."
"Currently, the companies are paid only if they are selected to give a ranking...."
So, they would be paid even if they aren't selected to give a final rating, reducing their incentive ... to make the number.
(( Why does the OLD scheme sound familiar ?? ))
Apparently Moody's, Standard & Poor's -and- Fitch are near an agreement with Cuomo to end an investigation
into the credit-rating companies' role in the subprime-mortgage fiasco
--- Why they gave top grades to subprime-mortgage securities / CDOs.
The agreement may give them incentive to do the right thing:
"The ratings companies would be paid by bond issuers for any preliminary work reviewing the structure of U.S. subprime- mortgage securities..."
"Currently, the companies are paid only if they are selected to give a ranking...."
So, they would be paid even if they aren't selected to give a final rating, reducing their incentive ... to make the number.
(( Why does the OLD scheme sound familiar ?? ))
