RobertB
September 27th, 2007, 12:57 AM
Sep 26, 6:33 PM EDT
Senators Question Credit Rating Agencies
By ALAN ZIBEL
AP Business Writer
WASHINGTON (AP) -- Executives from major credit rating agencies on Wednesday were accused by senators of being hampered by conflicts of interest that may have contributed to the mortgage market turmoil rattling investors worldwide.
The biggest rating agencies -Standard & Poor's, Moody's Investors Service and Fitch Ratings - are under fire from critics who say they failed to give investors adequate warning of the risks associated with mortgage-backed securities. Those investments are now plummeting in value as home-loan defaults soar, particularly among borrowers with weak, or subprime, credit histories.
Several members of the Senate Banking Committee questioned rating agency executives about whether they provided advice to investment banks that issue complex mortgage securities tied to subprime home loans.
http://hosted.ap.org/dynamic/stories/C/CREDIT_RATING_AGENCIES_CONGRESS?SITE=OHCOL&SECTION=HOME&TEMPLATE=DEFAULT
Senators Question Credit Rating Agencies
By ALAN ZIBEL
AP Business Writer
WASHINGTON (AP) -- Executives from major credit rating agencies on Wednesday were accused by senators of being hampered by conflicts of interest that may have contributed to the mortgage market turmoil rattling investors worldwide.
The biggest rating agencies -Standard & Poor's, Moody's Investors Service and Fitch Ratings - are under fire from critics who say they failed to give investors adequate warning of the risks associated with mortgage-backed securities. Those investments are now plummeting in value as home-loan defaults soar, particularly among borrowers with weak, or subprime, credit histories.
Several members of the Senate Banking Committee questioned rating agency executives about whether they provided advice to investment banks that issue complex mortgage securities tied to subprime home loans.
http://hosted.ap.org/dynamic/stories/C/CREDIT_RATING_AGENCIES_CONGRESS?SITE=OHCOL&SECTION=HOME&TEMPLATE=DEFAULT