The rating to risk assets that performed the entity was not according to their parameters before the financial crisis of 2008, and it showed the deception to investors to inflate the credit quality of the mortgages, pointed out by the Government.
The agreement with the Justice Department includes 21 states and the district of Columbia, and fixed the civil and criminal charges of contributing to the worst financial crisis of the past few years, the department said in a statement.
The investors believed that the credit ratings of Moody’s, were objective and independent, and expected to use their own published methods, said an officer of Justice.
In a general sense, the accusations relate to the role of the agency to the investors to acquire a mortgage subprime, or junk, which are high-risk and usually do not have any collateral, so that the probability that the acquirer of the mortgage do not pay your debt is high.
These mortgages have a higher interest than the rest and it was a great business for the banks, but to worsen the unemployment and low wages the debtors could not repay their loans, and in addition do not possess assets that support it.
This situation did exploit the market imnmobiliario, homes lost part of their value and with it the possibility of recovering the investment.
aml/tdd
No comments:
Post a Comment