Tag Archives: credit rating agencies

Were Banks Lying About The Quality Of Their Mortgages?

Lying is a serious charge to throw around. Check out this quote from Bloomberg reports: “You’re not talking about improperly stapling together two documents, you’re talking about systematic fraud in the system,” Neil Barofsky, the former special inspector general for … Continue reading

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Bank Of America’s Mortgage Servicing Downgraded

The SEC requires that one of three private credit rating agencies give a grade to all new bond offerings and the like. So, yes, this is a private business, but it is also a government mandated cartel. Bloomberg reports: Bank … Continue reading

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Home-Account.com: A review of a new Web site for comparing mortgages

Shopping for a mortgage online sounds like a great idea. Online shopping has brought down prices through increased competition across a broad swathe of industries. Why should it not work for mortgages? This New York Times blogger says this work … Continue reading

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Tightening Regulation On Credit Ratings

One big slice of the blame for the mortgage mess is the credit rating agencies who were way off in their ratings of mortgage-backed securities. They rated a lot of stuff AAA — which means really good — that turned … Continue reading

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Are Private Companies Inherently More Efficient Than The Government?

You’d think so. If a private company runs out of money, it goes bankrupt or gets sold. If a government agency runs out of money, it gets more funding from the politicians. The credit rating agencies are quasi-monopolies. They don’t … Continue reading

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New Regulations To Promote More Accurate Lending Risk

Credit rating agencies were spectacularly wrong in the past few years when they tried to assess the worth of mortgage-backed securities. When thousands of home owners can no longer afford to send in their monthly mortgage payments, all the fancy … Continue reading

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Slamming Mortgage Related Debt Products

CHICAGO (Reuters) – Analysts at Standard & Poor’s Rating Services warned against mortgage-related debt products in internal e-mails that, in one case, called the complex financial deals "ridiculous," the Wall Street Journal reported in its weekend edition. The Journal cited … Continue reading

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Attempts To Prevent Another Mortgage Meltdown

The Age in Melbourne says the Bush administration has more ideas for preventing a future credit crisis than for solving the current one. The administration wants state regulators and private industry to tighten their oversight of financial markets. In effect, … Continue reading

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