Securities and Futures Commission has spun out of control
Sunday, 04 January, 2015, 6:53am
Jake van der Kamp
A markets tribunal has overturned a request by Moody’s Investors Services for privacy in its appeal against a Securities and Futures Commission’s decision to fine the ratings agency HK$23 million.
SCMP Business, January 2
I just don’t understand these people at Moody’s. Here they were four years ago still facing awkward questions about whether they foresaw the 2008 financial crisis or were any better than the market itself in rating risk and they decided to come up with a new ratings tool.
They called it the “Red Flags” framework, a way of assessing fixed income risk in emerging markets. Red flags would be posted according to set rules for five critical areas in which corporate affairs could go wrong. Count the number of flags and you get a workable debt rating. Continue reading