All Commentary
Monday, September 27, 2010

Mortgage-Security Rating Agencies Turned Blind Eye to Warnings

“As the mortgage market grew frothy in 2006 — leading to a housing bubble that nearly brought down the banking system two years later — ratings agencies charged with assessing risk in mortgage pools dismissed conclusive evidence that many of the loans were dubious, according to testimony given last week to the Financial Crisis Inquiry Commission.” (New York Times)

These were members of a government-licensed rating cartel.

FEE Timely Classic
“Too Big to Succeed” by Less Antman