On Thu, Apr 29, 2010 at 10:56 AM, Ed Leafe <[email protected]> wrote: > On Apr 29, 2010, at 11:39 AM, Stephen Russell wrote: > >> Ed that act of reading the fine print has always been there. I know >> some brokers who will recommend stocks and be well compensated for >> that knowledge. Do I accept their belief in potential as AAA ? If >> they are wrong all that is said is better luck next time, and I think >> that ..... is going to do better and we should get in. > > Up until recently, the rating agencies were independent of the issuing > agency. They had no motivation to rate something higher than it should be, > and every reason to be as accurate as possible. > > The fraud occurred when issuers were allowed to rate their own > products. No one outside of the companies themselves knew about this. There > was no "fine print" to read. ------------------
I am not in the bond business but I think you still have to create a prospectus to advertise the components of this package. Street address, and value at sale time for this type of bond. I do not think that they rated the products but had the rating company that was at their bidding do the rating. A different form of "bogus value" nonetheless. Pure conflict of interest in the end and maybe that is the best that comes out of this go around? -- Stephen Russell Sr. Production Systems Programmer CIMSgts 901.246-0159 cell _______________________________________________ Post Messages to: [email protected] Subscription Maintenance: http://leafe.com/mailman/listinfo/profox OT-free version of this list: http://leafe.com/mailman/listinfo/profoxtech Searchable Archive: http://leafe.com/archives/search/profox This message: http://leafe.com/archives/byMID/profox/[email protected] ** All postings, unless explicitly stated otherwise, are the opinions of the author, and do not constitute legal or medical advice. This statement is added to the messages for those lawyers who are too stupid to see the obvious.
