Is Moody's a private company?

Reader comment on: Barone on the Bond Market

Submitted by ben (United States), Mar 25, 2010 10:05

Good thing we had private companies regulating risk, they did an excellent job. Why do you suddenly trust their assessment about the US, and not about private banks? Granted, the banks pay for Moodys providing a built in reason for them to do what the banks want, and the US doesn't, but isn't that an argument for a new type of rating system that isn't beholden to those being regulated?

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The Future of Capitalism replies:

The government set up Moody's, Fitch, and S & P as three "nationally recognized" ratings organizations. That inslulated them from competition and basically required firms to use them. It's crony capitalism, not real capitalism.

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Given that there will soon be no AAA countries its not clear what it would mean. [88 words]LyleMar 25, 2010 13:43
⇒ Is Moody's a private company?
[w/response] [70 words]		benMar 25, 2010 10:05

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