Sunday, May 25, 2008
"Moody's Investors Service is clarifying its code of conduct to convince regulators and investors that its bond-rating analysts aren't too close to the companies they cover. ... Self-imposed reforms could help Moody's and rivals [S&P] and Fimalac SA's Fitch Ratings stave off a regulatory crackdown. ... The report concluded that analysts shouldn't make proposals or recommendations about the design of structured-finance products, since such consultations can been seen as compromising objectivity in rating bond deals", WSJ, 15 May 2008.
Big deal. I wouldn't put any credence in "self-imposed reforms". I've seen their history of failure in the CPA profession. See my 6 October and 28 December 2007 posts.