more than ten years from the subprime crisis and the collapse of the american real estate market that triggered the great earthquake, and the financial and economic development of the post-War period, also Moody’s is preparing to pay the bill. And it is an account salty, although the result of a plea bargain with the federal authorities and the U.s. government, amounting to almost 864 million us dollars. The indictment, in part recognized by the international agency, is that of having inflated the ratings of mortgage is very risky, or to have underestimated the dangers in the years that have led to the great crisis, therefore, is first of 2008. For the same reason a year ago came the sting on the Standard & Poor’s, forced to pay us $ 1.5 billion. The agreement on Moody’s is probably the last game of the Obama administration, which in recent years has pursued particularly the large Wall Street banks which in total have poured into the coffers of the state, about 162 billion dollars in fines and penalties for selling financial products, risky and contributed to the chaos which was unleashed on the markets. A "catastrophe" that caused american families hit by the recession, around 11 thousand billion dollars.
subprime Mortgages, Credit Suisse patteggia 5,28 billion dollars
The agreement Moody’s Investors Service has been reached with the Department of justice, which will be 437,5 million dollars, and with the judicial authorities of 21 states and the District of Columbia where the capital city of Washington. The
the sums that will have to be paid, represent approximately one-third of the $ 2.5 billion earned by the agency in the years that preceded the crisis.
"Moody’s has failed in the observance of its rating standards and has betrayed the mission of transparency", we read in the papers of the prosecution. In the context of the agreement, the agency based in New York city is also committed to continuing on the road to a number of reforms to improve its functioning and make it less opaque as possible, ensuring that the ratings are as objective as possible, without giving in to pressures of any kind.
subprime Mortgages, sting Us on the Deutsche Bank
One of the objectives is to ensure the complete separation of the commercial part of the group from the one that performs the functions of a rating. In addition to the commitment to entrust independent bodies with all the changes I decided on the front of the evaluation methods adopted. Close also on the remuneration of employees that should no longer be tied to their financial performance.
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