Friday, Mar 23rd

Last update05:20:13 AM GMT

You are here News Economy Ex-Moody's exec: Ratings agencies corrupt

Ex-Moody's exec: Ratings agencies corrupt

E-mail Print PDF

Mary Schapiro, Moody CE)U.S. credit-ratings agencies have conflicts of interest because they're paid by firms they're supposed to rate neutrally, an ex-Moody's Corp. executive said.

"This conflict of interest permeates all levels of employment, from entry-level analyst to the chairman and chief executive officer of Moody's Corp.," William Harrington, a former Moody's Investors Service derivative products senior vice president, said in a filing to the U.S. Securities and Exchange Commission, which is considering new rules to reform the agencies.

Agency analysts are pressured through a culture of "intimidation and harassment" to give clients the ratings they want out of fear the clients will otherwise fire the agency and take their business to another one, Harrington said in a 78-page "comment" submitted to the SEC Aug. 8.

Moody's is one of the three central credit-rating companies in the United States, along with Standard & Poor's Financial Services and Fitch Ratings. Their job is to provide an objective analysis of the risk posed to investors by bonds, companies and countries.


Most Recent Related Stories...

Fed Raises Interest Rates for Sixth Time Since Financial Crisis

Jerome H. Powell The Federal Reserve raised interest rates on Wednesday by a quarter of a percentage point and...

Trump aides defend tariffs move as Europe and China decry 'trade war'

Trump aides defend tariffs as Ueope and China decry 'trade war' White House officials fanned out on Sunday to support Donald Trump’s planned imposition of tariffs on...

Ignoring GOP Pleas, Trump Sets Tariffs In Motion

Trump sets tariffPresident Donald Trump on Thursday set in motion tariffs that will slap fees on many imports...

27 Trump says he will impose tariffs on steel and aluminum imports 'next week'

Trump to impose steel and aluminum tariffsPresident Trump said Thursday he will soon place tariffs on steel and aluminum imports —  a move...
America's # 1 Enemy
Tee Shirt
& Help Support!
TVNL Tee Shirt
Conserve our Planet
& Help Support!
Get your 9/11 & Media
Deception Dollars
& Help Support!
The Loaded Deck
The First & the Best!
The Media & Bush Admin Exposed!