The S.E.C. Finds Moody's Guilty of Breaking Its Own Rules But Still Will Charge Them With Nothing
September 01, 2010

When the really true history of the financial collapse is written there will be a special place of infamy for the three major rating agencies: Moody's, S & P, and Fitch. I'd written about them before the system-wide disaster and during the weeks and months when American capitalism was truly on the ropes. Some sectors of the economy got their comeuppance; some didn't, getting away wholly unpunished and gloating about their escape by claiming that their lies about companies and public bonds were protected by the First Amendment. Free speech has insulated many rogues and criminals.

Buffett Takes On Mbia
December 30, 2007

My two favorite fraudulent shorts--MBIA and Ambac--fell again on Friday, MBIA to a disastrous new low.  Once during the last twelve months it was $76.02.  On Friday, it was actually $18.43 and closed at $18.74.  Triple A ratings, shmiple A ratings from the agencies (Moody's, S & P, Fitch) didn't and couldn't stop the slide.  MBIA has announced a billion dollar investment from Warburg Pincus, and there are two other money managers who have public confidence in the company.  Still, it goes from horrible to more horrible.  To...MBIA had let slip a few weeks ago that Warren Buffett had an inte

The Collapse Of The Bond Insurers
December 03, 2007

"Short Seller Sinks Teeth Into Insurer" is the headline to an article in Saturday's New York Times.

The Big Squeeze
October 30, 2007

"Fears over next victims of squeeze," reads the headline in the FT last night.  And there is plenty to be fearful about.As my last Spine suggested and several Spines weeks before that (and the FT specifies), investor worries should be "mounting that the next big casualties from the credit squeeze might be the specialist companies that act as guarantors for bond issuers."  The largest of these and the most phony is MBIA whose triple AAA ratings of bonds for schools, prisons, bridges, courthouses etc.