by Kathleen Casey and Frank Partnoy
New York Times
June 4, 2010
Warren Buffett may be the Oracle of Omaha, but even he is hamstrung by credit ratings agencies. Appearing on Wednesday before the Financial Crisis Inquiry Commission, he said that as the chairman of Berkshire Hathaway, he has “no negotiating power” with Moody’s and Standard & Poor’s, the two major agencies, because ratings were “required in many cases by the rules.”
This wouldn’t be so bad if the agencies had performed well in the financial crisis. Instead, by giving undeservedly high ratings, they helped create it.
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