Archive for December 8th, 2009

The Big Three Credit Rating Agencies

Tuesday, December 8th, 2009

At the heart of the US economic collapse – the residential real estate market nationwide. At the heart of the crisis in the housing market – the massive fraud committed by the Big Three rating agencies. The conflicts of interest were staggering even by Wall Street standards, and shockingly, remain largely in place to this day. Thus far at least, meaningful financial regulation remains elusive to put it mildly, and the long overdue revamping of the credit rating process is nowhere in sight. The Las Vegas real estate market is ground zero for the havoc caused by granting high risk mortgage-backed securities coveted “investment grade” ratings that had everything to do with fat fees and nothing to do with reality.