Daily Outrage: Moody’s, Standard & Poor, Fitch offered Congress pathetic excuses

WHO: Big 3 credit rating agencies

WHAT: Chiefs of the three biggest credit rating agencies admitted at a congressional hearing Wednesday that they did not fire or suspend any of their analysts who gave rosy, buy-now ratings to AIG and Lehman Brothers up until immediately before their collapse. Moody’s, Standard & Poor’s and Fitch all kept issuing ratings A to AAA until Lehman Brothers declared bankruptcy Sept. 15, 2008, and the federal government provided AIG with its first of four multibillion-dollar bailouts the next day.

HOW: Under tough questioning by San Mateo Congresswoman Jackie Speier, the rating agencies said their failed analysts kept their jobs but had done “a lot of thoughtful soul-searching.”

WHAT’S BEING DONE: The Big 3 rating agencies have been under fire since the 2007 collapse of the subprime home mortgage market for issuing happy ratings on numerous securities now proven to be junk. The feds are exploring various reform proposals.

OpinionOther Opinion

If you find our journalism valuable and relevant, please consider joining our Examiner membership program.
Find out more at www.sfexaminer.com/join/

Just Posted

Police release an image a cracked windshield on a Prius that Cesar Vargas allegedly tried to carjack. Vargas, who was shot by police a short time later, can be seen in videos jumping on the windshield and pushing a Muni passenger who disembarked from a bus. (Courtesy SFPD
SFPD releases videos of deadly police shooting

Cesar Vargas killed after reports of carjacking with knife

New legislation would make sure supportive housing tenants don’t pay more than 30 percent of their income for rent.. (Kevin N. Hume/S.F. Examiner))
Supportive housing tenants could get more help paying the rent

Supportive housing tenants struggling to pay rent could soon see their payments… Continue reading

Organizers of the San Francisco International Arts Festival had planned to use parts of Fort Mason including the Parade Ground, Eucalyptus Grove and Black Point Battery to host performances by about a dozen Bay Area arts groups. (Kevin N. Hume/S.F. Examiner)
Arts festival sues city over permit denial

Organizer says outdoor performances should be treated like demonstrations, religious gatherings

An oversight body for San Francisco’s mental health programs may be restructured after questions were raised about its management and lack of effectiveness. (Kevin N. Hume/S.F. Examiner)
Behavioral health oversight body looks for new start — and staff — after mismanagement

Members of an oversight body for San Francisco’s behavioral health programs said… Continue reading

The City requires the recycling or reuse of debris material removed from a construction project site. <ins>(Emma Chiang/Special to S.F. Examiner)</ins>
<ins></ins>
Permits proposed for haulers of construction debris to achieve zero-waste

San Francisco plans to tighten regulations on the disposal of construction and… Continue reading

Most Read