5/04/2010
Time to fix the rating agencies
The scoundrels at Capitol Hill are sleeping with the bankers and finance thugs in New York and are skirting around many areas that they should be looking into. According to a New York Times editorial in Today's paper, they have completely missed out the rating agencies like Moody's, Standard and Poor, and Fitch. These agencies are equally culpable for the mess in the financial meltdown with their triple A ratings on toxic CDOs.
The editorial commented, 'It is not just that raing agencies are incompetent, made wrong assumptions about the housing market and used flawed models to evaluate mortgage-backed securities. Their business is rife with conflicts of interest.' The last sentence is the crux of the matter. Conflicts of interest among financial institutions and the products they are selling. The call for banks to return to its traditional business and not be allowed to dabble in all kinds of investment is a move in the right direction.
In the local context, conflicts of interest is also a serious problems. But of course in the land of demigods and immortals, they could not see themselves compromising on their heavenly integrity. They will never be faulted for conflicts of interest. They could even be tasked to self regulate their activities.
A similar case to the rating agencies that have been allowed to get away scot free is the lead managers and auditors that brought in shady companies for listing. Several have gone down the drain despite the glowing reports put up by the auditing companies. And no one is taken to task.
The whole finance world is run by scoundrels and crooks protecting each other's backside. The world is looking to America to take the lead, for they do not know how or want to do anything.
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5 comments:
Thievery and scoundrels started to thrive the minute prehistoric man started organising their disparate tribes into political entities.
Big fishes eat small fishes and small fishes eat the planktons. The food chain extends right down to the microbes. This is the universal law and scumbags in the financial markets are no different. Auditors, rating agencies, government regulators, hell, they are birds of the same feather flocking together to rob the moms and pops of their hard earned cash and along the way, some Gordon Geckos of "Wall Street" fame who coined the mantra, "Greed IS Good" get rich just by hitching a ride on the gravy train.
When something goes awry no one in human form gets punished. It's always the corporate entity and that means nobody. Of course, a flash in the pan like Madoff goes to jail but he is just a sacrificial lamb, nothing else to calm down the lynching mob.
Agreed. Now where is the MartherFocker who wrote the stunning writeup and gave a AAA rating to........?
Hehe.
The swindlers as always, are enjoying their loots as they are immunized from the laws with the regulators in cahoot.
And
of course there are without doubt those in powers conniving.
They are not just corrupt societies, they are SICKENING and SINNING Societies that are far worse than secret societies.
patriot
Patriot,
I noticed you used "They".
Sorry to correct you. You should use "All of us".
Hehe.
It is to be expected. The pigs were all the time slurping from the same trough.
You can't expect one pig to fix another, can you?
Wally;
thank You much for the correction.
Me forgot to include the American Clones here.
Anyway, Redbean need not be upsetted by the American shenanigans. President Obama is an idealistic man and it seems that he wants to clean up America. Let's wish him luck.
As for SIN, we are victims more or less, so let's chip in and kpkb. Every effort that my fellow countryman contributes will be greatly appreciated. Redbean is doing a great job. Kudos to our friend.
patriot
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