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Justice Dept, states consider suing Moody's for bogus mortgage bond ratings

By Patrick   Follow   Sun, 10 Feb 2013, 4:57pm   255 views   6 comments
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http://www.reuters.com/article/2013/02/07/moodys-investigation-idUSL1N0B78YZ20130207

Feb 7 (Reuters) - The U.S. Justice Department and multiple states are discussing also suing Moody's Corp for defrauding investors, according to people familiar with the matter, but any such move will likely wait until a similar lawsuit against rival Standard and Poor's is tested in the courts.

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1. thomaswong.1986 Follow Befriend 15 threads 2,839 comments

   1   5:21pm Sun 10 Feb 2013   Share   Quote   Permalink   Like   Dislike   Facebook Stock PE 1800x earnings LinedIn Stock PE 790x earnings the same was true with housing both during 2000 to peak years and even today. There wont be much of a lawsuit regards bogus ratings. whats your basis for "ratings".. insane to buy. but main-street has this addiction to throw the dice and bet the whole house, they have no interest in ratings and any measures of fundamental valuations.

2. tatupu70 Follow Befriend (3) 15 threads 5,627 comments

   2   6:00pm Sun 10 Feb 2013   Share   Quote   Permalink   Like   Dislike   Patrick says whats your basis for "ratings".. It's pretty obvious--they were rating the credit worthiness of the homeowners. And they should have been able to figure out that a good percentage of the loans were crap and rated them accordingly.

3. thomaswong.1986 Follow Befriend 15 threads 2,839 comments

   3   6:12pm Sun 10 Feb 2013   Share   Quote   Permalink   Like   Dislike   tatupu70 says It's pretty obvious--they were rating the credit worthiness of the homeowners. real estate always go up.. and you have the Govt to cry to if things don't go well. try to tell someone there is a "RE bubble" back in 2000 to 2008.. good luck! try to tell someone RE prices in South CA fell by as much as 40% from 1989 to mid 90s... all you get is utter denial of such events. I still see it today... realistically speaking, the home buyers like so many decades past were OK with their income and credit history .. it was the price of the home which skyrocketed ... yet the homes didnt change ! We had bogus pricing !!!

4. tatupu70 Follow Befriend (3) 15 threads 5,627 comments

   4   7:06pm Sun 10 Feb 2013   Share   Quote   Permalink   Like (1)   Dislike   Thomas-- That is all completely irrelevent to whether Moody's committed fraud. Did they misrepresent the credit worthiness of the buyers or not?

5. thomaswong.1986 Follow Befriend 15 threads 2,839 comments

   5   7:16pm Sun 10 Feb 2013   Share   Quote   Permalink   Like   Dislike   tatupu70 says Thomas-- That is all completely irrelevent to whether Moody's committed fraud. Did they misrepresent the credit worthiness of the buyers or not? a nice way for you do totally ignore all the irrational pricing everyone was drunk over.

6. tatupu70 Follow Befriend (3) 15 threads 5,627 comments

   6   4:19am Mon 11 Feb 2013   Share   Quote   Permalink   Like   Dislike   thomaswong.1986 says a nice way for you do totally ignore all the irrational pricing everyone was drunk over. Yes, I'm also ignoring the price of tea in China. You know why? Because it is meaningless with respect to the topic of this thread. If anything, the fact that pricing was so irrational should have made it easy for Moody's to apply harsh ratings to the securities.