“Again, I am not a lawyer, but what exactly has to happen before this stuff falls under RICO. How is this not an organized crime situation?”
John Cole commenting on a former VP’s revelations about the rating agency Moody’s.
If you issue a security, you ask a rating agency to rate it. You pay them for this rating. Conflict of interest? You think?
It’s like the home inspector when you buy a house. Your real estate agent usually recommends the inspector. How many referrals you think an inspector will get if he finds too much wrong and squelches a few deals? Multiply that times millions of dollars in the financial area.