Former Moody's SVP charges that its analysis is "rotten to the core." - Competitive Intelligence2024-03-29T02:21:21Zhttp://competitiveintelligence.ning.com/forum/topics/former-moody-s-svp-claims-that-its-analysis-is-rotten-to-the-core?commentId=2036441%3AComment%3A59679&feed=yes&xn_auth=noNot preaching the right way,…tag:competitiveintelligence.ning.com,2012-12-18:2036441:Comment:774432012-12-18T07:12:34.858ZJEONG CHUN PHUOChttp://competitiveintelligence.ning.com/profile/JEONGCHUNPHUOC
<div class="description xj_comment_editor xg_user_generated" id="desc_2036441Comment77630"><p>Not preaching the right way, because the material is all wrong.</p>
<p>because the materials are all wrong, one cannot preach them rightly...</p>
<p></p>
<p>....................................</p>
<p>JEONG CHUN PHUOC</p>
<p>SL, cONS eXT LAW, aDV sYARIAH cOMPETITION</p>
<p>jeongphu@yahoo.com</p>
</div>
<div class="description xj_comment_editor xg_user_generated" id="desc_2036441Comment77630"><p>Not preaching the right way, because the material is all wrong.</p>
<p>because the materials are all wrong, one cannot preach them rightly...</p>
<p></p>
<p>....................................</p>
<p>JEONG CHUN PHUOC</p>
<p>SL, cONS eXT LAW, aDV sYARIAH cOMPETITION</p>
<p>jeongphu@yahoo.com</p>
</div> Subjective approach and lack…tag:competitiveintelligence.ning.com,2011-08-29:2036441:Comment:609392011-08-29T20:15:37.319ZDimitrios Philippelishttp://competitiveintelligence.ning.com/profile/DimitriosPhilippelis
Subjective approach and lack of ethics. They provide opinion in accordance with their personal interests, SIEMENS for example were bribing politicians in different countries, including Greece and no one of the evaluation houses knew it. The SEC came and ordered a legal probe because it was traded in the New York Stock Exchange and wanted to protect investors.
Subjective approach and lack of ethics. They provide opinion in accordance with their personal interests, SIEMENS for example were bribing politicians in different countries, including Greece and no one of the evaluation houses knew it. The SEC came and ordered a legal probe because it was traded in the New York Stock Exchange and wanted to protect investors. Hello,
Yes, indeed, this disc…tag:competitiveintelligence.ning.com,2011-08-29:2036441:Comment:609302011-08-29T07:52:11.799ZAri Korpinenhttp://competitiveintelligence.ning.com/profile/AriKorpinen
<p>Hello,</p>
<p>Yes, indeed, this disclosure from Mr Harrington is something I've been waiting for...that some insider from a major credit rating agency goes public and tells us all how the credit ratings are really made.</p>
<p> </p>
<p>The discussion here has focused on company ratings, but how about the country ratings? Maybe the insights from Mr Harrington's disclosure can also explain some of the following mysteries: (1) Why France has a top rating with both S&P (AAA) and Moody's…</p>
<p>Hello,</p>
<p>Yes, indeed, this disclosure from Mr Harrington is something I've been waiting for...that some insider from a major credit rating agency goes public and tells us all how the credit ratings are really made.</p>
<p> </p>
<p>The discussion here has focused on company ratings, but how about the country ratings? Maybe the insights from Mr Harrington's disclosure can also explain some of the following mysteries: (1) Why France has a top rating with both S&P (AAA) and Moody's (Aaa), while Chile has a much lower rating (S&P: A+, Moody's: AA3). This despite the fact that France has a public debt to GDP ratio of 84.2% (according to the IMF) and Chile has 7.6%; or (2) Why Moody's hasn't yet downgraded the US federal government debt rating whereas S&P has; or (3) Why Finland continues to maintain a top credit rating with both S&P and Moody's. This despite the fact that Finland currently has a government whose only order of business is to provide loan guarantees to deadbeat EU countries, while at the same time having 25% of its population retired and a decreasing active youth population (future taxpayers). (This is comparable to a private consumer who has been diagnosed with a debilitating disease being able to continue borrowing from the bank, despite being in the habit of guaranteeing loans that his alcoholic neighbour takes for the purpose of buying more liquor).</p>
<p> </p>
<p>Maybe the recent disclosure from Mr Harrington can explain this, too...</p>
<p> </p>
<p>All the best,</p>
<p>Ari</p> Hello Avner,
You are most w…tag:competitiveintelligence.ning.com,2011-08-22:2036441:Comment:604472011-08-22T23:27:18.254Zmonica nixonhttp://competitiveintelligence.ning.com/profile/monicanixon32
<p>Hello Avner,</p>
<p> </p>
<p>You are most welcome. I have a few web sites you might check out as well for some incisive non-mainstream analysis of the build up to the financial crisis, the causal factors, as well as all the underhanded and largely backroom dealing that happened, and is still transpiring, to provide air cover for the original fraud and the subsequent frauds to keep Wall St from ever being held accountable. Obliteration of years of accounting standards and fundamental tenets…</p>
<p>Hello Avner,</p>
<p> </p>
<p>You are most welcome. I have a few web sites you might check out as well for some incisive non-mainstream analysis of the build up to the financial crisis, the causal factors, as well as all the underhanded and largely backroom dealing that happened, and is still transpiring, to provide air cover for the original fraud and the subsequent frauds to keep Wall St from ever being held accountable. Obliteration of years of accounting standards and fundamental tenets of contract law anyone?</p>
<p>Some of the analysts who are published on these sites as well do a great job of deconstructing the propaganda being spewed ever so prolifically to convince the public that things aren't as bad as they are, how the statistics are manipulated on everything from the unemployment rate to the CPI, GDP, the real state of the banks, their ongoing efforts to walk away from liability and have full immunity, etc.</p>
<p>1) - <a href="http://theautomaticearth.blogspot.com/" target="_blank">http://theautomaticearth.blogspot.com/</a></p>
<p>2) <a href="http://dailybail.com/" target="_blank">http://dailybail.com/</a></p>
<p>3) <a href="http://www.nakedcapitalism.com/" target="_blank">http://www.nakedcapitalism.com/</a></p>
4) <a href="http://www.zerohedge.com/" target="_blank">http://www.zerohedge.com/</a> In the case of SIEMENS, SEC o…tag:competitiveintelligence.ning.com,2011-08-22:2036441:Comment:602702011-08-22T19:57:26.803ZDimitrios Philippelishttp://competitiveintelligence.ning.com/profile/DimitriosPhilippelis
In the case of SIEMENS, SEC ordered the invistigation and this has to be told because it is traded in the NYSE. The company has done nothing, rather they were using the payment of the politicians.
In the case of SIEMENS, SEC ordered the invistigation and this has to be told because it is traded in the NYSE. The company has done nothing, rather they were using the payment of the politicians. Hello Monika, Many thanks.It…tag:competitiveintelligence.ning.com,2011-08-22:2036441:Comment:602692011-08-22T17:43:56.318ZDr. Avner Barneahttp://competitiveintelligence.ning.com/profile/AvnerBarnea
Hello Monika, Many thanks.It seems to be very useful. Best, Avner
Hello Monika, Many thanks.It seems to be very useful. Best, Avner The SEC is an absolute joke t…tag:competitiveintelligence.ning.com,2011-08-22:2036441:Comment:603532011-08-22T14:17:22.298ZTrip Kranthttp://competitiveintelligence.ning.com/profile/TripKrant
<p>The SEC is an absolute joke that deserves no points. It is an institution that has been captured and corrupted by the financial world it is tasked with overseeing. </p>
<p>The SEC is an absolute joke that deserves no points. It is an institution that has been captured and corrupted by the financial world it is tasked with overseeing. </p> First of all we should congra…tag:competitiveintelligence.ning.com,2011-08-22:2036441:Comment:605332011-08-22T09:51:12.260ZDimitrios Philippelishttp://competitiveintelligence.ning.com/profile/DimitriosPhilippelis
<p>First of all we should congradulate the guy, the former Moody's SVP, who had the guts to bring into light this important subject. It means that there are forces which resist the fraud and fight for transparency and ethical existence of companies and people.</p>
<p>The next of point goes to the USA SEC that had its inner willing to reveal lots of unlawful practices, especially that of SIEMENS. But they left the job half. SIEMENS had paid many Greek corrupted and criminal politicians and the…</p>
<p>First of all we should congradulate the guy, the former Moody's SVP, who had the guts to bring into light this important subject. It means that there are forces which resist the fraud and fight for transparency and ethical existence of companies and people.</p>
<p>The next of point goes to the USA SEC that had its inner willing to reveal lots of unlawful practices, especially that of SIEMENS. But they left the job half. SIEMENS had paid many Greek corrupted and criminal politicians and the only one who knows is SIEMENS, they do not give the names of the Greek politicians who received the money from SIEMENS. This company MUST be punished by the citizens of the globe and not only of the USA and etc.</p>
<p>If we can search in the past we can find a lot of evaluations of Mood'ys, S&Ps and Fitch providing three As as rating to the companies such as SIEMENS, ENRON, LEHMAN BROTHERS and why not to the present CONSECO which stole money of a lot investors, and the most scandalous of all was that the FORTUNE 500 was including into the 500 the CONSECO.</p>
<p>Of course some one has to say congradulations to mr. Steve Fairfield for his posting of the corrupted companies such as ENRON, WORLDCOM and etc.</p>
I'd like to address Melanie…tag:competitiveintelligence.ning.com,2011-08-21:2036441:Comment:604302011-08-21T19:06:13.731Zmonica nixonhttp://competitiveintelligence.ning.com/profile/monicanixon32
<p> </p>
<p>I'd like to address Melanie Wing's comments about the personal ratings agencies. Frankly, FICO was proven to be the Smoking Gun of the Housing/Financial crisis. Michael Lewis, the Fed, and a handful of quants at various Universities and banking institutions have studied the default rates relative to scores and the conclusion has unequivocally been that the dependency on the FICO model led to disaster. First, there are many instances where the banks that actually did more due…</p>
<p> </p>
<p>I'd like to address Melanie Wing's comments about the personal ratings agencies. Frankly, FICO was proven to be the Smoking Gun of the Housing/Financial crisis. Michael Lewis, the Fed, and a handful of quants at various Universities and banking institutions have studied the default rates relative to scores and the conclusion has unequivocally been that the dependency on the FICO model led to disaster. First, there are many instances where the banks that actually did more due diligence, yes, applied human intelligence and knowledge, fared far better and had lower default rates, than the banks that relied strictly on FICOs alone. (So much for additional subjective human intelligence being part of the problem, it actually behooved the banks that applied it) Secondly, how does one explain why borrowers with lower FICOs in many instances defaulted at lower rates than those with higher FICOs? Thirdly, how does one explain why FICO significantly overestimated the default rates of the loans in the GSE portfolios? If FICO was truly objective, I don't think this would have happened. ( Rf: St Louis FED analysis)</p>
<p> </p>
<p>Further its my understanding, FICO helped S &P, Moody's develop the model(s) that they utilized to rate many RMBS securities, and we all know how that ended up. Additionally, it seems disingenuous to assert that FICOs aren't always accurate but they're objective. I would beg to disagree as the GSE example brings into question, but as well if they arent accurate who cares if they are objective? They're useless if they are wrong, as they were proven to be in the crisis and most of the banks now acknowledge this.</p>
<p> </p>
<p>Its also hard to make the case or seemingly infer that FICO and the personal credit agencies aren't also in the business to make money. Look at the explosion of personal credit monitoring services, (overlaid on the false marketing of identify theft being far higher than what it really is which FTC data blows apart)</p>
<p> </p>
<p>In closing, and back to objectivity but lack of accuracy- this is hardly fair to consumers who end up paying far higher rates than they should if there are errors on the reports by the banks. In a recent study I saw, 79% of the credit reports reviewed had multiple inaccuracies. Wow. Good luck to the poor guy who tries to get them fixed-the banks can just pop something over to Equifax and viola- done! The consumer may have conclusive evidence of inaccuracies, but welcome to hell on earth to get them fixed, which does then behoove the banks doing the reporting who then get to charge higher interest rates.....</p>
<p> </p>
<p> </p>
<p> </p>
<p> </p> Hi Avner,
Check out Matt Ta…tag:competitiveintelligence.ning.com,2011-08-20:2036441:Comment:602462011-08-20T17:12:32.041Zmonica nixonhttp://competitiveintelligence.ning.com/profile/monicanixon32
<p>Hi Avner,</p>
<p> </p>
<p>Check out Matt Taibbi at Rolling Stone he has produced multiple investigative reports on all the fraud as business model abuses by the mortgage/banking/securitization industry, how the SEC sold out and became a lapdog, how TARP funds were grossly misappropriated (the article on Mack's wife), the case against Goldman, why Wall St isnt in jail, etc. Generally a cornucopia of everything that's desperately wrong.</p>
<p> </p>
<p>Here are some links to some of the…</p>
<p>Hi Avner,</p>
<p> </p>
<p>Check out Matt Taibbi at Rolling Stone he has produced multiple investigative reports on all the fraud as business model abuses by the mortgage/banking/securitization industry, how the SEC sold out and became a lapdog, how TARP funds were grossly misappropriated (the article on Mack's wife), the case against Goldman, why Wall St isnt in jail, etc. Generally a cornucopia of everything that's desperately wrong.</p>
<p> </p>
<p>Here are some links to some of the pieces:</p>
<p> </p>
<p><a href="http://www.rollingstone.com/politics/news/is-the-sec-covering-up-wall-street-crimes-20110817?link=mostpopular1" target="_blank">http://www.rollingstone.com/politics/news/is-the-sec-covering-up-wall-street-crimes-20110817?link=mostpopular1</a></p>
<p><a href="http://www.rollingstone.com/politics/news/the-great-american-bubble-machine-20100405" target="_blank">http://www.rollingstone.com/politics/news/the-great-american-bubble-machine-20100405</a></p>
<p><a href="http://www.rollingstone.com/politics/news/exclusive-excerpt-america-on-sale-from-matt-taibbis-griftopia-20101018" target="_blank">http://www.rollingstone.com/politics/news/exclusive-excerpt-america-on-sale-from-matt-taibbis-griftopia-20101018</a></p>
<p><a href="http://www.rollingstone.com/politics/news/the-real-housewives-of-wall-street-look-whos-cashing-in-on-the-bailout-20110411" target="_blank">http://www.rollingstone.com/politics/news/the-real-housewives-of-wall-street-look-whos-cashing-in-on-the-bailout-20110411</a></p>
<p><a href="http://www.rollingstone.com/politics/blogs/taibblog/the-s-e-c-s-revolving-door-from-wall-street-lawyers-to-wall-street-watchdogs-20110330" target="_blank">http://www.rollingstone.com/politics/blogs/taibblog/the-s-e-c-s-revolving-door-from-wall-street-lawyers-to-wall-street-watchdogs-20110330</a></p>
<p><a href="http://www.rollingstone.com/politics/news/why-isnt-wall-street-in-jail-20110216" target="_blank">http://www.rollingstone.com/politics/news/why-isnt-wall-street-in-jail-20110216</a></p>
<p> </p>
<p>I would also suggest you pick up some of Michael Lewis's books-specifically Liar's Poker and The Big Short. As well "13 Bankers" by Simon Johnson and James Kwak is absolutely superb. As an aside, its probably a really good idea to have a barf bag in hand because you will be disgusted.</p>
<p> </p>
<p>Regards,</p>
<p>Monica</p>