And now, it is revealed that Moody’s allowed investment banks to cherrypick which analysts determined their ratings. Seems to me it is basic common sense that this would be a no-no, no?
Guess not, because it happened. “The Wall Street Journal reported Friday that the credit rating agency at times allowed banks to determine which analysts covered their deals, switching analysts at the bank’s request. The Journal, citing people familiar with the matter, reported that an investment bank requested a switch in analysts after the one assigned to them raised questions about their deals. That analyst was a member of a group that assigned ratings to collateralized debt obligations, the newspaper said.” http://www.rttnews.com/ArticleView.aspx?Id=614054