Ratings agencies to be quizzed over MF Global
from Financial Times, FT.com, January 29, 2012 5:57 pm
Members of Congress plan to quiz Moody’s and S&P executives about why the rating services were allegedly “overreliant” on MF Global to provide them with information, rather than conducting their own due diligence, people familiar with the matter said.
They also want to know why they were so late in downgrading the brokerage’s credit, despite warning signs like MF Global’s gamble on European sovereign debt and regulators’ insistence that the firm hold more capital relative to those positions.