Just when I have almost forgotten my irritation over the rating agencies which was the subject of my last post, here comes Citigroup sermonizing about the loose monetary policy regime followed by the Philippine central bank.
Coming from a company that received $45 billion TARP bailout and yet had the gall to pay bonuses in the hundred of millions, I can only say: Kapalmuks nyo naman!
Thursday, January 7, 2010
Wednesday, January 6, 2010
A colossal failure of rating agencies
Finished reading during the xmas break - December 23 to 27.
This book is highly recommended, at least by me, as a definitive introduction to the behind-the-scene activities that lead to the subprime crisis. It details how the big 3 rating agencies - Moody's, Fitch, S&P - were deeply involved in the mess.
These rating firms have no business nor the credibility giving out ratings on the Philippines or any other country. They rated Lehman's bonds highly and left investors clutching worthless bonds. And they are still on the roll.
What's worse is that Fitch is doing its rating game again in the Philippines; Moody's adds its voice to make a duet and S&P chimes in to complete a chorus.
This book is highly recommended, at least by me, as a definitive introduction to the behind-the-scene activities that lead to the subprime crisis. It details how the big 3 rating agencies - Moody's, Fitch, S&P - were deeply involved in the mess.
These rating firms have no business nor the credibility giving out ratings on the Philippines or any other country. They rated Lehman's bonds highly and left investors clutching worthless bonds. And they are still on the roll.
What's worse is that Fitch is doing its rating game again in the Philippines; Moody's adds its voice to make a duet and S&P chimes in to complete a chorus.
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