Moody's has agreed to pay nearly $US864 million ($1.1 billion) to settle federal and state claims it gave inflated ratings to risky mortgage investments in the years leading up to the global financial crisis. Moody's, along with the other two major rating agencies Standard & Poor's and Fitch, were widely criticised for giving low risk ratings to the risky mortgage securities being sold ahead of the crisis, while they reaped lucrative fees. In an interview with Ivan Leung, Simon Wu from Simon Wu and Co., is going to explain what role did rating agencies played during GFC and whether the payment is effective to stop them giving inflated rating in the future.
Moody's has agreed to pay nearly $US864 million ($1.1 billion) to settle federal and state claims it gave inflated ratings to risky mortgage investments in the years leading up to the global financial crisis. Moody's, along with the other two major rating agencies Standard & Poor's and Fitch, were widely criticised for giving low risk ratings to the risky mortgage securities being sold ahead of the crisis, while they reaped lucrative fees. In an interview with Ivan Leung, Simon Wu from Simon Wu and Co., is going to explain what role did rating agencies played during GFC and whether the payment is effective to stop them giving inflated rating in the future.
