BREAKING NEWS: NY Attorney General to Unveil Deal with Ratings Agencies
Moody's Investors Service and other rating agencies have signed an agreement with New York Attorney General Andrew Cuomo addressing rating practices, including fees, Moody's Chairman Ray McDaniel said announced early this morning.
The New York Attorney General is expected to sign the agreement on Thursday, said McDaniel, speaking at a Moody's conference for investors in New York.
The attorney general has been looking into Wall Street's role in the subprime mortgage crisis, including rating agency practices.
In the wake of the crisis in risky U.S. subprime mortgages, rating agencies were criticized for feeding the housing slump and credit market turmoil by assigning high ratings to risky securities that later tumbled in value.
Published on June 5, 2008
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