Che80
Interesting that the article mixes up Enron, Worldcom and the securitisation of US home loans. Enron and Worldcom were undone by false accounting practices and IMHO it would have been hard for rating agencies to identify these. Both were big companies where you would expect appropriate corporate governance and accounting policies/procedures. Executive of both companies were rightly sent to gaol.
In relation to securitisation, the rating agencies got it wrong big time. How you can take BBB tranches from different parts of the US, put them together and call them AAA because of diversification defies belief. Of course there is significant correlation of housing markets in a downturn.
- Forums
- ASX - General
- ratings agencies rule the roost – again
Che80Interesting that the article mixes up Enron, Worldcom and...
-
- There are more pages in this discussion • 1 more message in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
Featured News
The Watchlist
CCO
THE CALMER CO INTERNATIONAL LIMITED
Anthony Noble, MD & CEO
Anthony Noble
MD & CEO
Previous Video
Next Video
SPONSORED BY The Market Online