BerkeleyBob

Are Credit Rating Agencies Good for Anything?

I think it is remarkable that the rating agencies have not been the subject of more adverse comment and down the line, possible criminal liability for aiding and abetting the massive fraud in the sale of toxic loans. It is clear that the rating agencies drastically mis-understood the nature of sub-prime and Alt-A loans. Institutional investors and fiduciaries including foreign central banks relied on the rating agencies' representations. As an individual investor, I can put no credence on anything the rating agencies (or other "experts") say and have to make do with my own due dilligence.