Description:  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.

Source: Marketwatch.com
 
Date: 04/23/2010

Link: http://www.marketwatch.com/story/competition-lack-of-data-drove-flawed-ratings-2010-04-23?siteid=nwtwk

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?