Rating agency faces scrutiny

| 04/10/2009

(CNS): The ratings agency that gave the Cayman Islands its triple A rating recently was accused of ignoring their own staff’s concerns that ratings weren’t updated at regular intervals and that the firm violated laws by knowingly providing incorrect ratings. Former Moody’s compliance executive Scott McCleskey was given the “old mushroom treatment” and kept in the dark the US House Committee on Oversight and Government Reform heard last week. According to Bloomberg the House is considering legislation that would increase oversight of credit- ratings companies and make them liable for missteps and allow regulators to review the methods they use.

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