They all play the game and the Libor factor has been known to be tampered with since 2007. That was the year when the housing bubble was making itself known. There was a lot going on leading up to October 2008. The one thing that wasn't going on was ownership of the impending disaster. All the genius of Wall Street thought if they could manipulate enough of their own fuzzy math they could avoid disaster.
Right.
Why is regulation NECESSARY? Because the industry is not trustworthy. They aren't even trustworthy with their own futures and employment. The financial sector needs limits and boundaries. If they don't have them they are incapable of placing constraints on their own ability.
Given LIBOR played in the Morgan losses over a month, the lack of accountability TO EACH OTHER is incredibly dangerous. Dimon wants to be in London to stem disaster. He has learned his PEERS are jerks.
There has to be regulation and limits on the activity of this sector. It is too powerful and has too much impact on everything else. It is nuts to deregulate the financial sector. There is absolutely no assurances they will ever be capable of a deregulated industry. No reassures at all.
We know corruption grows as it weaves its way through established principles. There is no immunity to it when it becomes 'the mind think' of an entire industry. We call it culture, it isn't just the culture of the industry, it is the lack of government control over their practices.
By John Lippert, Zeke Faux and Jef Feeley on July 03, 2012
SECURITIES AND EXCHANGE COMMISSION
17 CFR Part 240
[Release Nos. 33-8570; 34-51572; IC-26834; File No. S7-04-05]
RIN 3235-AH28
Definition of Nationally Recognized Statistical Rating Organization (click here)
Since 1975, the Commission has relied in several significant regulatory areas on
credit ratings by rating agencies that the markets have recognized as credible. These
"nationally recognized statistical rating organizations," or "NRSROs," have typically
sought a level of comfort regarding their status as NRSROs through the no-action letter
process.
2
To date, nine firms have been identified as NRSROs by the Commission staff.
However, during the 1990s, several credit rating agencies consolidated so that there are
currently five such NRSROs: A.M. Best Company, Inc. (“A.M. Best”), Dominion Bond
Rating Service Limited (“DBRS”); Fitch, Inc. (“Fitch”); Moody’s Investors Service Inc.
(“Moody’s”); and the Standard & Poor’s Division of the McGraw Hill Companies, Inc.
(“S&P”)....
Right.
Why is regulation NECESSARY? Because the industry is not trustworthy. They aren't even trustworthy with their own futures and employment. The financial sector needs limits and boundaries. If they don't have them they are incapable of placing constraints on their own ability.
Given LIBOR played in the Morgan losses over a month, the lack of accountability TO EACH OTHER is incredibly dangerous. Dimon wants to be in London to stem disaster. He has learned his PEERS are jerks.
There has to be regulation and limits on the activity of this sector. It is too powerful and has too much impact on everything else. It is nuts to deregulate the financial sector. There is absolutely no assurances they will ever be capable of a deregulated industry. No reassures at all.
We know corruption grows as it weaves its way through established principles. There is no immunity to it when it becomes 'the mind think' of an entire industry. We call it culture, it isn't just the culture of the industry, it is the lack of government control over their practices.
By John Lippert, Zeke Faux and Jef Feeley on July 03, 2012
Morgan Stanley successfully pushed (click title to entry - thank you) Standard & Poor’s and Moody’s Investors Service Inc. to give unwarranted investment-grade ratings in 2006 to $23 billion worth of notes backed by subprime mortgages, investors claimed in a lawsuit, citing documents unsealed in federal court.
According to the plaintiffs, the documents reveal that what the ratings companies describe as independent judgments were actually unsupported by evidence and written in collaboration with the bank that was packaging the securities. Morgan Stanley and the ratings companies deny the allegations....
SECURITIES AND EXCHANGE COMMISSION
17 CFR Part 240
[Release Nos. 33-8570; 34-51572; IC-26834; File No. S7-04-05]
RIN 3235-AH28
Definition of Nationally Recognized Statistical Rating Organization (click here)
Since 1975, the Commission has relied in several significant regulatory areas on
credit ratings by rating agencies that the markets have recognized as credible. These
"nationally recognized statistical rating organizations," or "NRSROs," have typically
sought a level of comfort regarding their status as NRSROs through the no-action letter
process.
2To date, nine firms have been identified as NRSROs by the Commission staff.
However, during the 1990s, several credit rating agencies consolidated so that there are
currently five such NRSROs: A.M. Best Company, Inc. (“A.M. Best”), Dominion Bond
Rating Service Limited (“DBRS”); Fitch, Inc. (“Fitch”); Moody’s Investors Service Inc.
(“Moody’s”); and the Standard & Poor’s Division of the McGraw Hill Companies, Inc.
(“S&P”)....
