“ The ratings agencies weakened their standards as each competed to provide the most favorable rating to win business and greater market share. The result was a race to the bottom.”
From a US Senate report investigating Moody’s and Standard & Poor’s bond rating practices. Roughly 90% of AAA securities backed by subprime mortgages were later downgraded to junk status.
It looks like no one will go to trial for these actions. Apparently our courts are too busy seeking vindication from professional athletes to bother. (Via Bloomberg)
Source: bloomberg.com
