Earlier this month I wrote briefly about Moody's appearance before the House Financial Subcommittee on Capital Markets. It looked at that time that Moody's was basically not being prudent. Kevin Hall of McClatchy has looked into the situation more closely and attributes Moody's shortcomings to that old standby, greed.
Hall asserts that Moody's "purg[ed]analysts and executives who warned of trouble and promoting those who helped Wall Street plunge the country into its worst financial crisis since the Great Depression." All for the sake of increasing revenues and, ultimately, profits; revenues went from $800,700,000 in 2001 to $2.037 billion in 2006.
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