Every now and then some journalism breaks out across this fair nation:
As the housing market collapsed in late 2007, Moody’s Investors Service, whose investment ratings were widely trusted, responded by purging analysts and executives who warned of trouble and promoting those who helped Wall Street plunge the country into its worst financial crisis since the Great Depression.
A McClatchy investigation has found that Moody’s punished executives who questioned why the company was risking its reputation by putting its profits ahead of providing trustworthy ratings for investment offerings.
Instead, Moody’s promoted executives who headed its “structured finance” division, which assisted Wall Street in packaging loans into securities for sale to investors. It also stacked its compliance department with the people who awarded the highest ratings to pools of mortgages that soon were downgraded to junk. Such products have another name now: “toxic assets.”
Read the whole damning report. And can I say it is about damned time. There is a pulitzer here.
There is just no accountability in the financial sector. They refuse to do the right thing, refuse to any reasonable regulation, fire those who see both moral and financial problems with the current situation and promote those who caused the problem.
Punishing those who were right and rewarding those that were responsible for the collapse. What an immoral business full of unethical human beings.
If they can not take care of their own business, and they continue to do things that will be harmful to the economy and to the rest of us, then perhaps government should step in. There does not appear to be anyone else who can. These guys will not regulate themselves and really do not care what the rest of us think.
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