Thursday, September 10, 2009

Might the rating agencies be in more trouble than originally thought?

The other day I mentioned this interview with Terry McGraw of McGraw-Hill who basically said that Moody's merely had it wrong and there was no fraud.

In this response, David Eihorn suggests that this "we messed up" defense may not be enough. Now that said, he is short the stocks of rating agencies so it is ironic that he is speaking on conflicts of interest, but it does bring up some serious questions for the jury and judge to sort out.

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