France Loses AAA Rating

Rating Agencies Sued For Violating Public Trust

According to the Los Angeles Times Connecticut's Attorney General filed a lawsuit a few days ago against Moody's and S&P claiming that they knowingly cooked up the ratings they issued for complex derivatives. The latter have been blamed for sending the US economy into recession.

You will recall that the SEC also carried out an investigation of the ratings agencies. We blogged about that at the end of 2009.

How Rating Agencies Struggled With Growth

Or is it greed? You should read the SEC's summary report below to find out for example about one analytical manager e-mailing to a colleague that rating agencies were creating an even bigger monster -- the CDO market. Let's hope we're wealthy and retired by the time this house of cards falters. ;o)."

Not too sure they managed to retire in time.

Rating Agency Gets Moody

About our two biggest and hugely profitable banks. For sure and as remarked by Manou Bheenick rating agencies should be careful before pointing fingers after the part they played in the global financial meltdown.

Still, the long string of irresponsible statements uttered by the man responsible for the annual sprouting of hundreds of pockets of poverty throughout our island did not help matters. Here's what his score looks like:

2006: Triple External Shocks

2007: 5 cyclones along with early harvest

2008: 3 crises coupled with bumper crop

2009: He's working hard to prevent us from going into the ICU of the IMF but we're so resilient (come on, be thankful to the guy!)

I guess the next terms in this uncertainty-creating sequence are 4 storms, 2 earthquakes, 6 tornadoes, 42 volcanic eruptions, 3.5 tsunamis, 1 typhoon, 3 mudslides and 2 hurricanes.