Monday, November 30, 2009

Blumenthal suing the CRAs for "negligient, reckless and incompetent work"

As I mentioned earlier this year, Attorney General Blumenthal is not a fan of the credit rating agencies (CRA) - the same CRAs on on whose advice the Town's fund balance policy is predicated. And now AG Blumenthal is joining Ohio in a suing the CRAs:

Nov. 25 (Bloomberg) -- Connecticut plans to join Ohio in suing credit-rating companies for “negligent, reckless and incompetent work” in grading debt purchased by state pension funds, according to Attorney General Richard Blumenthal.

Good. I'm so tired of hearing about the virtues of the CRAs... and how Cheshire is "financially sound" because The CRAs said so! Listening to that line is like listening to Chris Dodd say he's done a good job as banking chair in the past year... hello?!... McFly?!... TBTF, anyone?!

The CRAs are at the heart of the mess. Whether they were too hard on towns or too soft on corporations, they have almost no credibility as far as I'm concerned.

Tim White

No comments: