Amid Goldman Fraud Case, Scrutiny of Rating Agencies Increases

The SEC fraud case against Goldman Sachs has put the spotlight on a couple of firms - hedge fund Paulson & Co. and ACA Management LLC - involved in the deal.

But scrutiny is increasing on the credit rating agencies that gave sterling marks for risky securities, both in the Goldman case and in the government's broader probe of the financial crisis.

The mortgage-backed security at the heart of the Goldman case was given a AAA rating by both Moody's Investor Service and Standard & Poor's, prompting Rep. Darrell Issa, R-Calif., to question Moody's role in the case during an interview on CNBC.

"Why is it Moody's isn't just as much in the focus here? How could John Paulson know that these were actually bad mortgages and Moody's couldn't know?"

Also Wednesday, the Financial Crisis Inquiry Commission issued subpoenas to Moody's for documents the firm had failed to produce, according to a New York Times report. It was the first subpoena issued by the federal panel, which is investigating the events leading up to the financial crisis of 2008.

[noloyalisti]

We have the most corrupt political and economic system in the world (Mafia bankster politics and predatory capitalism). Time to take it down.

[stychokiller]

@noloyalisti:
-- [quote]We have the most corrupt political and economic system in the world (Mafia bankster politics and predatory capitalism). Time to take it down.[/quote]

Great! Let's start with throwing ALL of their Decepticratic AND Republicon enablers out of Office in November!

[KeithDrippingSprings]

These guys really didn't have to know anything as long as the folks they were rating played by the rules but greed got the better of them all. It happens in every boom, no matter the industry. The problem with this boom and bust is that we have no honest politicians left to straighten out the mess.

[stevador39]

Corrupt political machines and machine bosses established thenselves in cities around the nation. They used public offices and tax dollars for the private interest of their 'clients.' Among the most successful was Tom Pendergast in Kansas City. Harry Truman was Pendergast's creature. As U.S. President Truman establish the National Security Council, the CIA and the United Nations. Crime bosses moved from cities to the control of the nation. How is that controlling crime?

[noloyalisti]

Honestly, does anyone believe the Mafia banksters were going to get away with their crime spree forever? Even organized crime in the American cities in the 20th century were finally taken down.