Comments on: How Can Moody's Survive as an Independent Credit Rating Agency? http://emac.blogs.foxbusiness.com/2008/05/27/how-can-moodys-survive-as-an-independent-credit-rating-agency/ Fri, 20 Nov 2009 19:57:36 -0500 http://wordpress.org/?v=2.8.5.2 hourly 1 By: K Buechler http://emac.blogs.foxbusiness.com/2008/05/27/how-can-moodys-survive-as-an-independent-credit-rating-agency/comment-page-1/#comment-1471 K Buechler Tue, 27 May 2008 18:28:45 +0000 http://emac.blogs.foxbusiness.com/2008/05/27/how-can-moodys-survive-as-an-independent-credit-rating-agency/#comment-1471 I'm curious: you said that they had sub-prime mortgage-backed bonds go from (implicitly) AAA straight to "junk" in one step. Did this happen? Was it unique to Moody's, or did S&P and Fitch have similar results. This drastic a change in rating indicates someone was asleep at the switch. If this happened more than a couple of times it would seem to a very serious problem that should be a basis for some form of strict supervisory oversight. I’m curious: you said that they had sub-prime mortgage-backed bonds go from (implicitly) AAA straight to “junk” in one step. Did this happen? Was it unique to Moody’s, or did S&P and Fitch have similar results. This drastic a change in rating indicates someone was asleep at the switch. If this happened more than a couple of times it would seem to a very serious problem that should be a basis for some form of strict supervisory oversight.

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