Little has changed in world of bond ratings, even after Dodd-Frank was supposed to shake it up....


Little has changed in world of bond ratings, even after Dodd-Frank was supposed to shake it up. Moody's (MCO), S&P (MHP), and Ftich still dominate the business (98% of the municipal market vs. 94% in 2007) and have plenty of pricing power. "We don't look to compete on price," says Moody's. No wonder Warren Buffett likes it.

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  • Yaron Ron Reuven
    , contributor
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    I cant believe that the rating agencies are still allowed to stay in business let alone make more money, after the colosal screwup they facilitated in the recent financial crisis. How can anyone take them seriously after they rated crap the same level of safety as the US government? why arent the regulators taking more action? why arent investors boycotting them? if it werent for the AAA ratings, the amount of subprime and other financial instruments sold wouldnt have been anywhere near the same. These rating agencies should gather up together during thanksgiving and celebrate the short memory investors and public have sometimes.
    22 Nov 2011, 06:30 PM Reply Like
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