Comments on: S&P Announces Changes to Forestall Criticism and Regulation http://www.nakedcapitalism.com/2008/02/s-announces-changes-to-forestall.html Sun, 22 Nov 2009 19:08:53 -0500 http://wordpress.org/?v=2.8.4 hourly 1 By: Anonymous http://www.nakedcapitalism.com/2008/02/s-announces-changes-to-forestall.html#comment-3794 Anonymous Fri, 08 Feb 2008 02:40:00 +0000 http://www.nakedcapitalism.com/2008/02/sp-announces-changes-to-forestall-criticism-and-regulation/#comment-3794 People like to think that logic prevails in the financial markets, that traders and investors always act rationally. “Clearly, institutional investors want to believe it’s all scientific,” said Mark W. Yusko, president of Morgan Creek Capital Management.<br/><br/>But Wall Street can get carried away. The Internet boom and bust were followed by an even bigger boom and bust in mortgage lending. Wall Street is now saddled with more than $100 billion in losses stemming from mortgage investments, and the economy may be sliding into recession.<br/><br/>Alpesh Patel, principal at the Praefinium Group, an asset management company, said that when traders get too emotional, they start making bigger, more frequent trades. People like to think that logic prevails in the financial markets, that traders and investors always act rationally. “Clearly, institutional investors want to believe it’s all scientific,” said Mark W. Yusko, president of Morgan Creek Capital Management.

But Wall Street can get carried away. The Internet boom and bust were followed by an even bigger boom and bust in mortgage lending. Wall Street is now saddled with more than $100 billion in losses stemming from mortgage investments, and the economy may be sliding into recession.

Alpesh Patel, principal at the Praefinium Group, an asset management company, said that when traders get too emotional, they start making bigger, more frequent trades.

]]> By: dlmw12 http://www.nakedcapitalism.com/2008/02/s-announces-changes-to-forestall.html#comment-3788 dlmw12 Thu, 07 Feb 2008 22:05:00 +0000 http://www.nakedcapitalism.com/2008/02/sp-announces-changes-to-forestall-criticism-and-regulation/#comment-3788 I left S&P in 2006 after a twenty year career there. When I started there as a corporate ratings analyst, the firm already had a policy in place limiting the number of years an analyst could follow a company to 5 years. I cannot recall a single instance when this rule was actually observed, however. We also had a policy that we would not rate a company with less than three years of operating history. This rule also fell by the wayside, although initially I did see it enforced. I left S&P in 2006 after a twenty year career there. When I started there as a corporate ratings analyst, the firm already had a policy in place limiting the number of years an analyst could follow a company to 5 years. I cannot recall a single instance when this rule was actually observed, however. We also had a policy that we would not rate a company with less than three years of operating history. This rule also fell by the wayside, although initially I did see it enforced.

]]> By: bob http://www.nakedcapitalism.com/2008/02/s-announces-changes-to-forestall.html#comment-3780 bob Thu, 07 Feb 2008 18:19:00 +0000 http://www.nakedcapitalism.com/2008/02/sp-announces-changes-to-forestall-criticism-and-regulation/#comment-3780 "<i>If S&P really believes a few organizational tweaks will save their reputation and along with it, the debt markets, their judgment is badly impaired.</i>"<br/><br/>And the news is....? “If S&P really believes a few organizational tweaks will save their reputation and along with it, the debt markets, their judgment is badly impaired.“

And the news is….?

]]> By: Anonymous http://www.nakedcapitalism.com/2008/02/s-announces-changes-to-forestall.html#comment-3778 Anonymous Thu, 07 Feb 2008 17:53:00 +0000 http://www.nakedcapitalism.com/2008/02/sp-announces-changes-to-forestall-criticism-and-regulation/#comment-3778 I have a three step plan for Moody's, S&P and Fitch:<br/><br/>1. Downgrade each other<br/><br/>2. Place each other on ratings watch<br/><br/>3. Go out of business for being corrupt, inefficient and useless; who needs bogus under-the-table manipulation? Who will pay for a service that has no value and how do they predict they will be able to verify future models, future ratings, future value? They are prognosticators of drifting clouds and what they do is no better than tossing chicken bones into a cup of tea leaves and selling worthless opinions on what amount to false and misleading wall street hype! I have a three step plan for Moody’s, S&P and Fitch:

1. Downgrade each other

2. Place each other on ratings watch

3. Go out of business for being corrupt, inefficient and useless; who needs bogus under-the-table manipulation? Who will pay for a service that has no value and how do they predict they will be able to verify future models, future ratings, future value? They are prognosticators of drifting clouds and what they do is no better than tossing chicken bones into a cup of tea leaves and selling worthless opinions on what amount to false and misleading wall street hype!

]]> By: Anonymous http://www.nakedcapitalism.com/2008/02/s-announces-changes-to-forestall.html#comment-3775 Anonymous Thu, 07 Feb 2008 13:27:00 +0000 http://www.nakedcapitalism.com/2008/02/sp-announces-changes-to-forestall-criticism-and-regulation/#comment-3775 The board members and officers of the rating companies (and possibily officials of the State of New York and the US Treasury)need to be concerned about criminal liabilities for maintaining the highest rating on the monolines. The board members and officers of the rating companies (and possibily officials of the State of New York and the US Treasury)need to be concerned about criminal liabilities for maintaining the highest rating on the monolines.

]]> By: Francois http://www.nakedcapitalism.com/2008/02/s-announces-changes-to-forestall.html#comment-3772 Francois Thu, 07 Feb 2008 13:04:00 +0000 http://www.nakedcapitalism.com/2008/02/sp-announces-changes-to-forestall-criticism-and-regulation/#comment-3772 Absolutely laughable. These "criminal idiots" (to quote Barry Ritholhz's yesterday post in The Big Picture) think they will succeed?<br/><br/>Only an ultra-friendly Supreme Court can pull out another Ridgestone ruling to stave off the mountain of lawsuits that will fall upon these despicable nitwits Absolutely laughable. These “criminal idiots” (to quote Barry Ritholhz’s yesterday post in The Big Picture) think they will succeed?

Only an ultra-friendly Supreme Court can pull out another Ridgestone ruling to stave off the mountain of lawsuits that will fall upon these despicable nitwits

]]> By: Anonymous http://www.nakedcapitalism.com/2008/02/s-announces-changes-to-forestall.html#comment-3771 Anonymous Thu, 07 Feb 2008 13:03:00 +0000 http://www.nakedcapitalism.com/2008/02/sp-announces-changes-to-forestall-criticism-and-regulation/#comment-3771 Add this to Bernanke's rate cuts and Bush's stimulus package and BofA's bailout of Countrywide and on and on .... and throw them all into the bonfire of the fig leaves Add this to Bernanke’s rate cuts and Bush’s stimulus package and BofA’s bailout of Countrywide and on and on …. and throw them all into the bonfire of the fig leaves

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