Rating Co's. & Cuomo !

[Workbox]

Just in (Bloomberg), The Rating Co's. and Cuomo have come to an agreement due to investigations. Do not have any link yet.

 

[Riick]

LINK Newer Link

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
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, under NEW plan, they would be paid even if they aren't selected to give a final rating, reducing their incentive ... to make the number.
Newest news says: "As part of the new agreement, the credit rating agencies agree to work on a fee-for-service model, rather than a commissions basis."
(( Why does the OLD scheme sound so familiar ?? ))

 

[Caligirl]

http://appraisersforum.com/showthread.php?t=140012

 

[Karl]

Anybody on the Forum been invited to meet with Mr Couomo & Company in N.Y. this week?? June 3-4-5-6- 2008 or next week???