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View Diary: William K. Black to FDIC/Obama: Stop the Friggin Fraud (178 comments)

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  •  Due diligence was the responsibility of (3+ / 0-)
    Recommended by:
    Major Tom, Badabing, Wolf10

    the ratings agencies...that were bought off. I can't entirely blame a school system, for example, that did not do its' own due diligence when investing its' retirement funds, that is what the ratings agencies are for. Soveriegn wealth funds, on the other hand, really have no excuse. This is supposedly their business.

    "Man is least himself when he talks in his own person. Give him a mask, and he will tell you the truth." Oscar Wilde

    by nippersdad on Fri Oct 22, 2010 at 05:13:01 PM PDT

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    •  Except that the ratings agencies (0+ / 0-)

      never told institutional investors they were doing due diligence. Investors were well aware of the specifics of the ratings process, and they often complained about it. But every deal issued in 06 and 07 got gobbled up anyway. The highly-paid managers of these institutional investors knew exactly what they were buying, they just fucked up. They didn't figure that real estate would blow up and the securitization market would implode. But the smarter ones did.

      I'm in the I-fucking-love-this-guy wing of the Democratic Party!

      by doc2 on Fri Oct 22, 2010 at 06:36:13 PM PDT

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