Mounds upon mounds of corruption were at the root of the subprime financial crisis.
Our hatred of the fat cat bankers who made millions off of predatory loans, and the lazy regulators, who did nothing about it and even enabled it, knows no bounds. Even more infuriating is the lack of consequences for what they did.
But somehow, a key player has managed squeak by - until now. As a result of 2 major lawsuits, incriminating documents have been piling up that prove - without a doubt - that ratings agencies like Moody's and S&P played a *huge* part in the scam.
Turns out that for years, Moody's and S&P have been "shameless tools for the banks, willing to give just about anything a high rating in exchange for cash."
One email from a S&P exec reads, "Lord help our f****ing scam...this has to be the stupidest place I have worked at." Another reads, "If we are just going to make it up in order to rate deals, then quants [quantitative analysts] are of precious little value."
So much for integrity, the very concept these ratings agencies supposedly stand for.