The Bloomberg/BusinessWeek headline was enough to ruin your evening: SEC Declines to Sue Moody’s Over Inflated Ratings.
The facts were even worse: Moody’s, the bond rating company, chose not to downgrade inflated ratings on almost $1 billion of debt in 2007. The reason? Concern for their own reputation. The decision came out of Moody’s Investors Service committee in Europe, raising jurisdictional issues.
Our CrowdQuery for this evening:
1. Will the Rating Agencies ever be forced to pay for the massive damage they have inflicted?
2. Is the current system of NRSRO going to change?
3. What is structured finance and bond ratings likely to look like in the future? What should it look like?
What say ye?