February 13, 2009

Credit-rating services get to doctor their own ratings ….

by

While many — including the Securities and Exchange Commission — have questioned the role of credit-rating sevices in the current financial meltdown, you won’t be reading about it, as expected, in a forthcoming book from McGraw-Hill called Bailout Nation: How Easy Money Corrupted Wall Street and Shook the World Economy. That’s because — as Greg Bensinger details in this Bloomberg News report — author Barry Ritholtz, CEO of an equities research firm, withdrew the book because he said McGraw-Hill editors kept editing passages he’d written about one of the biggest credit rating agencies of them all, Standard & Poor’s — which, as it turns out in an amazing coincidence, owns McGraw-Hill. Says Ritholtz, “It’s kind of hard to write a book about the financial crisis without mentioning the ratings agencies.”

Dennis Johnson is the founder of MobyLives, and the co-founder and co-publisher of Melville House.

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