Monday, April 20, 2009

Moody's Sued

"A former Moody's Investors Service credit bureau analyst has sued the company, alleging he was fired after his call on a bond rating was trumped by a manager's concern about how much the bond issuer was paying Moody's. Paul Bienstock, a former vice president at the unit of Moody's Corp., said in a lawsuit in US District Court in New York that he was dismissed after complaining to Moody's compliance department about his manager. The lawsuit alleges the supervisor caused an upgrade for Express Scripts Inc. to be withheld, arguing that the company 'doesn't pay us.' Moody's spokesman Michael Adler ... said 'Moody's is strongly committed to protecting the integrity of its ratings and we have robust procedures in place to do that.' A spokeswoman for Express Scripts, a Missouri-based pharmacy-benefits mamager, declined to comment. ... The lawsuit, filed by the firm of Sack & Sack, alleges he was fired by [Patrick] Finnegan on Dec. 12. Mr. Finnegan who has since left Moody's, didn't return calls seeking comment", Jennifer Levitz at the WSJ, 26 March 2009.

Sack & Sack? You're kidding. This case bears watching. If Bienstock is correct, he complained on 4 December 2007 and was fired eight days later, Moody's better have a big check waiting for him. Coincidence? I don't think so.

3 comments:

Anonymous said...

Moody's blues.... errr...

How about the global financial system blues?

Moody's = criminals

Jr Accountant said...

And why again isn't Schapiro ALL over this? "considering adjusting ratings agencies" is not "prosecuting or pursuing the criminals"

Anonymous said...

Me thinks Shapiro is:

1.In over her head
2. Still mesmerized by the big banks that used to pay her $3 million a year salary "regulating them"...