Ratings Agencies Bowed To Wall St. Pressure: Report

Law360, New York (April 23, 2010, 4:54 PM EDT) -- The U.S. Senate permanent subcommittee on investigations on Friday ripped into major credit rating agencies for allegedly caving to market pressure in assigning top grades on subprime mortgage-backed securities, saying agencies consistently ignored red flags in order to please their investment bank clientele.

In the third in a series of hearings examining the root causes of the recent financial crisis, the Senate panel put credit rating giants Moody's Investors Service and McGraw-Hill Co. Inc. subsidiary Standard & Poor's Financial Services LLC in the spotlight as case...
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