Item: Moody's and S&P basically trashed on the Hill today (Fitch escapes).
Item: Cable news turns to Moody's Chief Economist for expert commentary.
Now, Mark Zandi has been as good a commentator on events as any, perhaps even better than average, and certainly a moderating influence on those economists with radical views ... but you just have to savor life's little "ironical moments".
THE BLACKSPOT WILL WIDEN
These firms put people in charge who didn't know enough or who were willing to risk the whole franchise to be CDO Queens.
THAT, sdaly, starts to call into question the judgment and ability of those who select and promote talent within the organization.
The hearings on the Hill that revealed some of the most naughty of messages and e-mails were as bad as those from tech underwriters of the 1990s, who penned that their securities offerings were known to them to be p.o.s.THAT, sdaly, starts to call into question the judgment and ability of those who select and promote talent within the organization.
One expects that from brokers. One doesn't typically expect that from ratings agencies, who often limit their market power to subtle and episodic abuse(s), not flagrant joke's-on-you.
Fitch emerged as one of the three who had a CEO that knew enough to refuse the "game", even at the cost of market share and soaring stock price.
As for the others, the blackspot will widen. It takes years - decades - to build up a reputation as a "rating agency", no matter what field or industry you are in. These firms put people in charge who didn't know enough or who were willing to risk the whole franchise to be CDO Queens.
THAT, sadly, starts to call into question the judgment and ability of those who select and promote talent within the organization.
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