[BITList] CDO's - misleading!

[CT's]

"He said he is proud of Moody's reputation and the firm's record of 100 years of rating trillions of dollars in debt."



disappointing! - this bastard [and many others on wall street] should be jailed for life.......................

yes, sue, sue sue.....................

ct

Moody's Chief Says CDO Ratings 'Deeply Disappointing' (Update1)
By Matthew Leising and Andrew Frye

June 2 (Bloomberg) -- Moody's Corp. Chief Executive Officer Raymond McDaniel said his company's ratings of collateralized debt obligations and residential mortgage securities in the past several years have been "deeply disappointing."

McDaniel said the collapse of the housing market and subsequent financial crisis were of a magnitude "many of us would have once thought unimaginable," according to written testimony submitted to the U.S. Financial Crisis Inquiry Commission before a hearing today in New York on credit ratings. He said he is proud of Moody's reputation and the firm's record of 100 years of rating trillions of dollars in debt.

"However, the performance of our credit ratings for U.S. residential mortgage-backed securities and related collateralized debt obligations over the past several years has been deeply disappointing," he said. "Moody's is certainly not satisfied with the performance of these ratings."

Moody's, Standard & Poor's and Fitch Ratings face scrutiny by Congress and state insurance regulators after assigning top grades to U.S. subprime-mortgage bonds just before that market collapsed in 2007, sparking the financial crisis. Moody's said last month it may be sued by the U.S. Securities and Exchange Commission for filing false and misleading descriptions of its credit-ratings policies.
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