Description:Â During the buildup to the financial crisis, major rating agencies Moody’s Corp. and Standard & Poor’s Inc. were understaffed, didn’t have enough data about the mortgage securities they were rating and were pressured by each other and investment bankers to issue overly rosy ratings, a lawmaker said Friday.
Questions for discussion:
- Summarize the arguments presented by each side of this issue.
- What is your view of whom, if anyone is to blame for any neglect or improper behavior?
- What lessons can be learned here in order to help reduce the risk of repeating mistakesthat were made?