Hints and tips:
...Raymond McDaniel, Moody’s chief executive, acknowledged at a conference this week that there could be higher US taxes “post election”....
...First, the survival of Moody’s and Standard & Poor’s (now known as S&P Global Ratings)....
...The S&P 500 has fallen from a cyclically-adjusted price/earnings multiple of 34 to 31, still more than double the long-term average....
...Rival rating agency S&P Global Ratings, has already settled over similar allegations, paying out $1.5bn....
...Consultants and insurers in the US are predicting more buyouts in large part because of the rising costs of paying into the PBGC, which they say can run into tens of millions of dollars a year for an S&P...
...Analysts say that last month’s stock market slump — which marked the worst start to the year for the S&P 500 for more than a decade — was a test for a fledgling industry that has lured dozens of start-ups...
...“[It] feels a lot like we’ve seen this movie before,” Mr McDaniel said....
...The DoJ action this week raised questions as to why S&P was being targeted and not Moody’s....
...Markets, said the results vindicated bulls – including himself – who see the company as a “toll collector” in the fixed income market, because bond issuers feel they need to buy a rating from it or rival S&P....
...Fitch and S&P make a similar point....
...with such transactions”, it says, and the letter to Mr Peterson asks whether S&P took into consideration MF Global’s January 2011 decision to replace its chief risk officer....
...The results echo those earlier this week of S&P, which is part of media group McGraw-Hill....
...Even after Moody’s and S&P adjusted those models, documents show they declined to re-evaluate the riskiest products, largely at the behest of the banks....
...Ann McDaniel, managing director of Newsweek, told staff “there’s likely a better home for Newsweek, one which offers synergies and opportunities not currently offered by The Washington Post Company“, but...
...Staff at Moody’s and S&P described a fraught relationship with investment banks, which put pressure on the agencies to deliver triple A ratings....
...“Potential conflicts exist, regardless of who pays,” Moody’s Mr McDaniel told the Senate committee. The pressure on the agencies is growing, however....
...An email exchange from S&P between analysts on rating a CDO without access to data on the underlying collateral ends thusly, with a message from the ranking committee member: Any request for loan level...
...The Moody’s results echo those released by McGraw-Hill, the parent of S&P, which this week also beat analysts’ expectations....
...S&P on Thursday moved to revamp its governance procedures, analytics and ratings transparency in the face of rising regulatory pressure....
...Five days later, Clarkson was appointed chief executive of the company, replacing Raymond McDaniel....
...Raymond McDaniel, chairman and chief executive, said: “The integrity of our rating process is core to Moody’s values and is essential to the market.”...
...S&P this month downgraded $23.35bn of US residential mortgage-backed securities issued in 2007....
...Since the piece was written, P&O have offered £5,000 to two of the families....
...“I think our ratings are going to look good, but we are still going to be criticised,” says Ray McDaniel, chief executive of Moody’s....
...It rose 9 per cent to 73½p – compared with 509p in March. But questions remain about what sort of a future it has....
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