News, analysis and personal reflections on the markets & the financial sector

Monday, October 27, 2008

Rating agencies scrutinized by House panel

Source: CNBCRaymond McDaniel, CEO of Moody's, told Congress that in the run-up to the financial crisis, the three major credit-rating agencies -- Moody's, Standard & Poor's and Fitch Ratings -- were trapped in a race to the bottom, forced to lower standards to maintain market share. Rep. Henry Waxman, D-Calif., chairman of the House Committee on Oversight and Government Reform, said that race was lucrative for the rating agencies in the short run but disastrous for the global economy in the long run.

more at http://www.marketwatch.com/news/story/Ratings-agencies-put-system-risk/story.aspx

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