But what would a deal by cows look like?

    In a hearing today before the House Oversight Committee, the credit
rating agencies are being portrayed as profit-hungry institutions that
would give any deal their blessing for the right price.
   Case in
point: this instant message exchange between two unidentified Standard
& Poor’s officials about a mortgage-backed security deal on
4/5/2007:
Official #1: Btw (by the way) that deal is ridiculous.
Official #2: I know right…model def (definitely) does not capture half the risk.
Official #1: We should not be rating it.
Official #2: We rate every deal. It could be structured by cows and we would rate it
. (Economist)

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>