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Thursday, June 27th, 2013

The Last Mystery of the Financial Crisis

Author:     MATT TAIBBI
Source:     Rolling Stone
Publication Date:     June 19, 2013 9:00 AM ET
 Link: The Last Mystery of the Financial Crisis
Stephan:   Here is the final bit explaining the complete corruption of the financial sector; it deals with the debasing of the the rating agencies. It is blatantly obvious from many sources that the Obama Administration Justice Department has failed to serve the public interest. We are five years past the 2008 meltdown, and it cannot be denied that no real effort has been made at the Federal level to hold these corporations, or the men and women who control them, accountable. Thus, I do not see how it is going to be possible to avoid another meltdown. The system is simply too corrupt, I think it is going to implode again because of its unregulated greed.

What about the ratings agencies?

That’s what ‘they’ always say about the financial crisis and the teeming rat’s nest of corruption it left behind. Everybody else got plenty of blame: the greed-fattened banks, the sleeping regulators, the unscrupulous mortgage hucksters like spray-tanned Countrywide ex-CEO Angelo Mozilo.

But what about the ratings agencies? Isn’t it true that almost none of the fraud that’s swallowed Wall Street in the past decade could have taken place without companies like Moody’s and Standard & Poor’s rubber-stamping it? Aren’t they guilty, too?

Man, are they ever. And a lot more than even the least generous of us suspected.

Everything Is Rigged: The Biggest Price-Fixing Scandal Ever

Thanks to a mountain of evidence gathered for a pair of major lawsuits by the San Diego-based law firm Robbins Geller Rudman & Dowd, documents that for the most part have never been seen by the general public, we now know that the nation’s two top ratings companies, Moody’s and S&P, have for many years been shameless tools for the banks, willing to give just about anything a high rating in exchange for cash.

In incriminating e-mail after incriminating e-mail, executives and analysts from these companies are caught admitting their entire business model is crooked.

‘Lord […]

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