Moody's Analyst Breaks Silence: Agencies are Rotten To Core With Conflicts, Corruption, And Greed

MOODY'S ANALYST BREAKS SILENCE: Says Ratings Agency Rotten To Core With Conflicts, Corruption, And Greed.

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A former senior analyst at Moody's has gone public with his story of how one of the country's most important rating agencies is corrupted to the core. The analyst, William J. Harrington, worked for Moody's for 11 years, from 1999 until his resignation last year.

From 2006 to 2010, Harrington was a Senior Vice President in the derivative products group, which was responsible for producing many of the disastrous ratings Moody's issued during the housing bubble.

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The primary conflict of interest at Moody's is well known: The company is paid by the same "issuers" (banks and companies) whose securities it is supposed to objectively rate. This conflict pervades every aspect of Moody's operations, Harrington says. It incentivizes everyone at the company, including analysts, to give Moody's clients the ratings they want, lest the clients fire Moody's and take their business to other ratings agencies.

In other words: if you reflect what we (banks) tell you, you will get paid, otherwise not. Result: sub-prime mortgages were given AAA ratings. The more reckless the behavior of banks became, the higher the profits of credit rating agencies grew. In plain words: fraud was committed and we pay the bill for this through austerity crap.



Perhaps I should also start a credit rating agency. Simply share your 'opinion' (as their CEO's call ratings) and become rich.

Moody's ratings often do not reflect its analysts' private conclusions. Instead, rating committees privately conclude that certain securities deserve certain ratings--and then vote with management to give the securities the higher ratings that issuer clients want.

Moody's management and "compliance" officers do everything possible to make issuer clients happy--and they view analysts who do not do the same as "troublesome." Management employs a variety of tactics to transform these troublesome analysts into "pliant corporate citizens" who have Moody's best interests at heart.

Moody's product managers participate in--and vote on--ratings decisions. These product managers are the same people who are directly responsible for keeping clients happy and growing Moody's business.

At least one senior executive lied under oath at the hearings into rating agency conduct. Another executive, who Harrington says exemplified management's emphasis on giving issuers what they wanted, skipped the hearings altogether.

It's not protestors who destroy countries, it's these very monsters who do. If revolutions appear in the West, it's them to blame, not the average Joe on the street.




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Next item on obvious list, the sky is blue, water is wet, polticians are corrupt.

This should be on every MSM in the world 24/7 till it sinks in.

Funny, I was thinking of posting this as well... I saw it on yahoo's finance page...

yahoo link

Not very surprising info though... I mean who doesnt know its all corrupt? Just no one wants to do anything about it :/

Originally posted by morder1
Not very surprising info though... I mean who doesnt know its all corrupt? Just no one wants to do anything about it :/

True, but it doesn't happen often that an insider blows the whistle. Most of this scum is too busy to fill their pockets and those of their banker friends at the expense of the common people. First they destroyed Greece, then Portugal and France is next in line. They will continue until the entire card house comes tumbling down and we've all lost everything.

Originally posted by Vitchilo
Next item on obvious list, the sky is blue, water is wet, polticians are corrupt.

This should be on every MSM in the world 24/7 till it sinks in.

Exactly. But it won't be on FauxNews or MSNBS because the truth is not a marketable product

Screw these agencies, and the masters that they serve.

Start with DC and clear everything out until all the animals, thieves, and shysters that have turned this world into hell are gone

Originally posted by Vitchilo
This should be on every MSM in the world 24/7 till it sinks in.

'Twould be awesome if government/financier corruption became the big news story like a war or a trial. We would have most of the news dedicated to it. There would be breaking news interrupting your regularly scheduled program. Your regularly scheduled program would be a special on government/financier corruption.

Originally posted by illuminatislave
the truth is not a marketable product

Has anyone tried?

Originally posted by Mdv2
It's not protestors who destroy countries, it's these very monsters who do. If revolutions appear in the West, it's them to blame, not the average Joe on the street.

It's not "them", it's the system that's to blame. It's flawed, destined from the start. The bigger you are, the harder you fall. Just remember that revolution doesn't have to be destructive.

protons electrons always cause explosions

so very few posts on this subject...how sad...we truly are asleep....

Thanks to OP...didn't see this until now....

It's true these ratings agencies hold as much blame as the bankers and government for the crash of 07/08. Still people hang on their every word, when it comes to dishing out a countries rating. These were the same agencies giving tripple A ratings to dodgy sub prime mortgage debt. Then pension companies and other Investment companies bought these packages under the assumption they were safe financial products.