"In the latest sign that the clouds are starting to clear over an important part of the financial markets, Moody's Investor Service affirmed its top-notch credit ratings to MBIA Inc, the world's biggest bond insurer", WSJ, 27 February 2008.
It's time the RAs were sent to sleep. With the fish. Their carefully considered opinions are worthless. The CPA profession has its Big Four, the RAs, their Big Three (TBT). Anything TBT do should be viewed skeptically. Mike Shedlock (MS) has a nice post on this topic at http://www.globaleconomicanalysis.blogspot.com/ 26 February 2008 . MS makes it clear the RAs retention of AAAs for the monolines is absurd by comparing them to Pfizer, a real company. I have an idea for Moody's and S&P: lobby Congress to become subject to PCAOB oversight. The PCAOB can form a sister organization to create standards for the RAs then fill it with former rating agency employees and harass the non-NRSROs to show the PCAOB does something. We'll call it: Rating Organization Bullying Oversight Team, ROBOT. ROBOT can go on its "tick and tie" adventures and do nothing to protect the public from bad TBT ratings. If Mark Olson (MO), PCAOB head, doesn't like ROBOT, how about Rating Agency Craven Knavish Enforcement Thespians, or RACKET. How about it MO? You can have RACKET start by reviewing Egan-Jones. Whadda say?