i wonder why things went wrong?

I’m reading on structured finance and credit rating agencies. Here’s a great moment from Moody’s, a rating agency.

Moody’s has no obligation to perform, and does not perform, due diligence with respect to the accuracy of information it receives or obtains in connection with the rating process. Moody’s does not independently verify any such information. Nor does Moody’s audit or otherwise undertake to determine that such information is complete. Thus, in assigning a Credit Rating, Moody’s is in no way providing a guarantee or any kind of assurance with regard to the accuracy, timeliness, or completeness of factual information reflected, or contained, in the Credit Rating or any related Moody’s publication. (Moody’s Investor Service, Code of Professional Conduct 6)

One might reasonably ask, then, “what DO you do?”

One thought on “i wonder why things went wrong?”

  1. This might be an appropriate moment for the wisdom of Charles Wright and the Watts 103rd Street Rhythm Band:

    “It’s not what you look like when you’re doing what you’re doing, it’s what you’re doing when you’re doing what you look like you’re doing.”

    In other words, Moody’s job was just to “express themselves.”


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