Friday, February 8, 2008
New York Attorney General Andrew Cuomo is not satisfied that Standard & Poor's and Moody's have proposed meaningful reforms to their ratings procedures. In a statement he said that S&P and Moody's "are attempting to make piece-meal change that seem more like public relations window dressing than systemic reform." While he has not filed charges against any of the ratings agencies, his investigation into how they assigned triple A ratings to bonds backed by risky subprime loans continues. The SEC is conducting a similar investigation. NYTimes, Bond Raters in Effort to Repair Credibility, WSJ, Rating the Rating Overhaul.