After taking accusations that the firm has a policy of ratings inflations, Moody’s Investors Services told a House panel today that an independent law firm had concluded that such allegations are untrue, according to the Wall Street Journal. Speaking before the U.S. House Oversight Committee, Moody’s representative and Chief Credit Officer Richard Cantor said that law firm Kramer Levin had preliminarily concluded that the firm was blameless. The initial accusations stem from comments made by two former Moody’s employees, Eric Kolchinsky and Scott McCleskey, both of whom spoke before the Committee today as well. McCleskey, in particular, claimed that he was replaced at the firm by compliance officers connected to the mortgage derivatives market.
Moody’s Asserts Ratings Inflation Claims Untrue
Two former employees at Moody’s Investors Services claim that the agency has inflated their ratings, claims that the firm itself denies.
September 30, 2009