The real scandal in the Goldman scam

According to the WSJ, it was Moody’s and S&P, who gave this junk triple A ratings. The game would never have worked without that”.


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8 responses to “The real scandal in the Goldman scam

  1. Retired IB'er

    Yeah and unless things have changed since my day, who do you think pitched the rating agencies on the issue? I’ll give you a hint… their initials are GS.

  2. Anonymous

    What’s Uncle Warren’s view?
    Doesn’t he own one of the ratings agencies?

  3. Anonymous

    “According to the WSJ, it was Moody’s and S&P, who gave this junk triple A ratings. The game would never have worked without that”.”

    That’s nothing new. It has been well reported right from the beginning of the meltdown.

    The real question is why these two outfits have never been held accountable for their phony ratings. IMHO they are at least as culpable, if not more so, as any of the other parties involved in the debacle.

    They profited by putting their imprimatur on these things. They supposedly checked this stuff out using their vast resources for doing so and pronounced it investment grade, but they were being paid by the guys selling the junk.

    Why isn’t the SEC or the DOJ going after these fraudsters?

    The civil action against GS is just a fig leaf to make it appear that the feds are getting tough on Obama’s Wall Street buddies; the chance of any of these creatures’ facing charges for what they did are roughly equivalent to that of a snowball in hell.

  4. Inagua


    The rating agencies were not fraudsters. They were dopes. Just like the people who bought the mortgage packages. And just like the people at AIG who insured them. They all relied on the same math formula to provide cover for what they did not understand. You can read all about it here.

  5. Greenwich Gal

    The ratings agencies are the red headed step children of Wall St. You only work for one if you can’t get a job anywhere else. There is neither the intellectual or moral authority to challenge the big boys. They do what they are told, essentially. Hopefully, this will change – but not until there is some type of compensation or stature to be able to attract quality candidates.

  6. sw

    Warren did own almost 20% of Moody’s until a few months ago but sold a bunch of his shares.

  7. Riverside Dog Walker

    Heard on Bloomberg Radio that ratings agencies have never been held legally accountable for their ratings. Their legal defense, which has always worked, is that they have no fiduciary responsibilities related to their ratings, and that they are only exercising their rights to free speech.

    Leaves me kinda speechless as well…