Warren Buffet Says Don't Blame the Ratings Agencies, but isn't that a conflict of interest

Excuse me, don’t you own a big chunk of Moody’s. And why shouldn’t we blame the rating agencies. Firms are paying you to give them some assurance, shouldn’t you do your due diligence before opining something as “AAA”.

Ratings agencies give firms, governments and individuals, a false sense of security. These folks are no better at prognosticating, then a copper penny. Arthur Anderson was shuttered for less a mistake.

 

Warren Buffet Says Don't Blame the Ratings Agencies

Investment sage Warren Buffet told the federal commission investigating the causes of the financial crisis that finger-pointing at the big three credit ratings agencies should be directed elsewhere. The ratings industry has come under heavy fire from lawmakers and regulators for assigning top credit grades to mortgage-backed bonds that later turned out to be lemons. But in his testimony, Warren said he's "much more inclined" to come down hardest on the banks' CEOs. He says the ratings agencies made the same mistake that 300 million other Americans made.