No. of Recommendations: 6
Quite a change to 2008 where junk issuers could buy AAA rating from rating agencies who when challenged declared their ratings to be ‚protected free speech‘
This is Shinyland. Remember Robert Rubin, Clinton's Sec Treasury. They guy who opposed regulating derivatives. The guy who pushed for repeal of Glass-Steagall? After his stint at Treasury, he moved on to Citi.
I still had cable in 2001, and was watching Bubblevision, when the news broke that Rubin had been leaning on his contacts at Treasury for them to push ratings agencies to not downgrade Enron's debt, for the ease and comfort of Citi. Mark Haines, in sarcastic wide-eyed amazement, said "I didn't know credit ratings were negotiable".
Of course, by 09, Shinyland had pushed the corruption envelop, a lot, in pursuit of fatter short term profits.
Steve
