Greenspan: Blame the Rating Agencies

February 12, 2009 3:51pm by Barry Ritholtz

Perhaps I am biased, but Greenie and I finally agree on something:

Mr. Greenspan also lays the blame on the ratings agencies and the people that trusted their judgment for the proliferation of the mortgage derivatives that were a major part of the current financial crisis.

“What we have created in this world is an aura around the credit rating agencies about certification from them is the Good Housekeeping seal of approval, ” Mr. Greenspan said. “I will tell you the record of a lot of the forecasters of ratings have not been distinguished. They never were.”

Easy Al’s interview is part of a two-hour documentary on CNBC tonite, “House of Cards” at 8 p.m. and 12 a.m. Eastern time.

Source:
Greenspan Says He Was Mystified by Subprime Market
Cyrus Sanati
Dealbook, February 12, 2009, 7:50 am
http://dealbook.blogs.nytimes.com/2009/02/12/greenspan-says-he-was-mystified-by-subprime-market/

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