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Tuesday, February 5, 2013

Ratings agency on the hot seat.....

http://dealbook.nytimes.com/2013/02/04/u-s-and-states-prepare-to-sue-s-p-over-mortgage-ratings/?nl=todaysheadlines&emc=edit_th_20130205
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2 comments:

Andrew Grodner said...

Better late than never ...

And I encourage anyone to look at their credit score. Let's take Equifax. If you ever find any inconsistency in the changes to your score and call them they will say that they only provide the data and use formula from FICO. If you call FICO they say their formula is good but probably data from EQUIFAX is bad. And you call the government and they say they can do nothing because all of this is patented intellectual property. So when you ask again EQUIFAX a direct question whether there is any way to correct an honest mistake they made against you, the answer is no. But they will quickly add that such procedure is not necessary because they never make mistakes ...

I am sure S&P will find a way to point the blame somewhere else and claim their rating process is fair and reliable. Still, it should be fun to watch.

February 5, 2013 at 11:26 PM
EconPirate said...

I've always said Moody's & S&P deserve the bulk of the blame. The VAST majority of the blame.

February 6, 2013 at 7:49 PM

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