Nothing has changed. Kroll torches S&P.
Jules Kroll, CEO of a bond rating start-up, discusses the S&P case with David Faber.
"Many of the practices you're seeing in the DOJ's lawsuit with S&P are still going on, shaping things in order to get more business. The major ratings agencies are still selling out. S&P needs a great lawyer. The game is not over for Moody's and Fitch, either."
"It's very clear from this lawsuit that S&P will have years of difficulty defending what is really unconscionable behavior. Those of us in the field understand that this has been taking place for a long time. This industry was out of control and this lawsuit calls them into question in a serious way."
"This investigation was going on for 18 months before the credit downgrade, how dare S&P suggest that they were singled out because they gave a downgrade of the U.S. credit rating."
Remember that Moody's largest shareholder is crony legend Warren Buffett.
The U.S. Justice Department and multiple states are discussing also suing Moody's for defrauding investors, according to people familiar with the matter, but any such move will likely wait until a similar lawsuit against rival Standard and Poor's is tested in the courts.
Inquiries into Moody's are in the early stages, largely because state and federal authorities have dedicated more resources to the S&P lawsuit, said the sources, who were not authorized to speak publicly about enforcement discussions.
Shares in credit rating agency Moody's fell sharply on Friday as the prospect of a federal fraud lawsuit over its pre-crisis debt ratings overshadowed a 66 percent rise in quarterly earnings and a strong 2013 outlook.
UPDATE - Here's a sample of Warren Buffett's love for taxpayers.
- Warren Buffett's $600 Million INTEREST-FREE Loan From Taxpayers & Many Other Ways The Government HOSES You To HELP The Insanely Rich!