The Son of Finance of the Great Age

  Chapter 783 Save Moody (1)

   "The principles of rating agencies should be based on an objective and fair position, not an incentive mechanism for market share."

Sure enough, Eric Krsinski pointed the finger at the entire rating system as soon as he opened his mouth, "Institutions package their assets to rating agencies, and use the method of paying a part of the fee to perform credit rating ratings. This practice It's just wrong in my opinion, it's a misplaced incentive."

"Obviously, this kind of behavior that emphasizes quantity over quality, and short-term interests over long-term interests may be prevalent among investment banks, but it is not suitable for authoritative rating agencies that affect the entire market. In Moody's On the one hand, this motivation manifests itself in the pursuit of market share.”

"I must admit that it was because I insisted on a more conservative and safe rating method that Moody's was fired after the performance plummeted in the subprime loan derivative debt market. About this , I have never been able to understand. I think it is this kind of corporate culture that caused rating agencies to become the most important accomplices in the financial crisis."

"Not only Moody's, but even S&P, Fitch and other institutions, as far as I know, are pursuing the same approach. So I think that there are serious problems in the corporate culture of the entire Wall Street rating agencies. It is harmful to interests and the market. The chasing of shares makes it difficult for them to maintain an objective and neutral position, which leads to a large amount of shoddy bonds flowing into the market that should not belong to them, making the market full of risks that should not exist.”

   "The above is all I have to say!"

  Eric Krsinski talked eloquently for a long time on the phone, and finally took a long breath, calmly drank a big sip of water, and slowly calmed down his excited emotions.

  No one in the audience spoke, only the sound of the camera shutter clicking.

   "..."

   Al Fran let out a long sigh, not knowing what to say.

Eric Kinsinski said that although Al Fran achieved part of his goals, his involvement was too wide and had already affected the foundation of the entire US rating agency. In this case, even Al Fran No matter how determined Fran is, it is impossible to continue the investigation.

  Originally he only wanted to pull the branch of Moody, but now what Eric Krsinski has to do is to cut down the big tree of the US rating agency, which is far from what he hoped.

   But seeing the other party's cooperation, Al Fran didn't know what to say, so he forced a smile and nodded, showing his approval for the other party's attitude.

  But in his heart, he was yelling at the other party for being stupid.

  After waving Eric Krsinski back, Al Fran and several other committee members whispered for a long time, then looked up and looked down, just in time to catch a trace of Zhong Shi's meaningful smile.

  In all fairness, Zhongshi didn't have any other meanings, but disdain for Eric Krsinski's remarks, but in the eyes of Al Fran, it turned into a mockery of him.

   How can the pride of a member of Congress be ridiculed by a Wall Street capitalist. Immediately Al Fran snorted coldly, stared at Zhong Shi and said slowly: "Hand down a witness!"

   "Any witnesses?"

  Dean Bendtner was taken aback for a moment, and then comforted himself, "The whole hearing has become a joke. Since Mr. Congressman is not giving up, let's add another joke."

  But Zhong Shi is not as optimistic as he is. He knows very well that the more the trump card is, the more it must be used at the end. All that Al Fran did before was in vain, and he still insisted on doing it, so the last thing must have a certain deterrent and lethal power.

   Soon, a timid young man came out. As soon as he appeared, all the video cameras and cameras in the hall were aimed at him, and the overwhelming sound of shutters and spotlights immediately surrounded him. This made him suddenly startled, and his face suddenly became pale and bloodless.

   After finally walking past the surrounding media, the young man stuttered and swore in the company of a lawyer, and then carefully sat half of his buttocks on the chair.

   "Witness name?"

   Al Fran looked at this person's posture, and sighed again in his heart, thinking to himself that his team had recruited some people, and they couldn't get on the stage at all. Even if such a person goes to court, he will lose points in front of the jury because of his current performance.

  Hearing the voice from the opposite side, the young man's buttocks suddenly jumped up like a spring. But the next moment, under the lawyer's reminder, he realized that he didn't need to stand up to answer the question, but he was embarrassed to sit down again, and looked at the opposite side timidly, until Al Fran nodded subtly, he He sat down slowly.

  Naturally, Al Fran was even more dissatisfied with his performance, snorted heavily, and asked again: "Witness name?"

   "Richard Michuk!"

  The young man shrunk his head and carefully looked around for a while. Before Al Fran lost his patience, he was sure that the other party was asking him, and answered in a low voice.

   "Witness ever worked for ratings agency Moody's?"

  Al Fran was already furious, but under the watchful eyes of everyone, he still had to hold back the anger in his heart, and asked calmly, "Is there such a thing?"

"Have!"

  Richard Michuk is like squeezing toothpaste. Al Fran said a little, and he answered a little, with no intention of confessing himself.

   "Then what department do you work for?"

A blush flashed across Al Fran's face, and then he took a long breath, slowly calming down the depression and irritability in his heart, and then continued to ask: "There are also specific job responsibilities and tasks, What are there?"

Perhaps aware of the bad tone of the other party, Richard Michuk finally had a sense of consciousness, and replied in a long way: "I used to work for Moody's. From 2002 to 2009, a total of 7 years. During this period, he was a junior analyst, a senior analyst, a vice president. When I left the company, my last position was the senior vice president of the structured products and derivatives department."

Seeing that the other party finally got the hang of it, Al Fran breathed a sigh of relief, knowing that the whole hearing had finally entered his own rhythm, he was determined at the moment, instead of continuing to cross-examine in a hurry, he was thinking about how to get out of this person's mouth. Set out more things.

   "Is this person also your Moody's?"

   Zhong Shi was also quite surprised by the appearance of former Moody employees one after another, and couldn't help asking Dean Bendtner, "What's going on with you, how did you find traitors?"

   "..."

   Zhong Shi's question made Dean Bendtner feel very embarrassed and didn't know how to answer it. He wanted to speak several times, but in the end he hesitated.

  Seeing his appearance, Zhong Shi couldn't help sighing, and asked again: "What's going on with this guy, what does he know?"

"a lot of!"

Dean Bendtner took out a towel, wiped the sweat from his forehead, and said in a low voice, "According to what he said just now, this guy should be in a key department. There are many inside stories that cannot get around him, so if he If you really want to speak, I'm afraid..."

  He didn't continue talking, but Zhong Shi already understood the meaning.

  At that moment, Zhong Shi's face darkened, and his heart also became heavy.

   "Witness, during your time at Moody's, have you encountered anything that you consider unprofessional?"

  Al Fran finally figured out how to interrogate him, and immediately went straight to the point, "So, whether it was against your own will or your own will, did you do anything during the Moody period that you think violated professional ethics?"

   "..."

   After whispering with the lawyer for a while, Richard Michuk finally said, "Yes!"

   Naturally, his words caused an uproar in the audience. Disregarding the discipline of the venue, people began to discuss in whispers. And the cameras and cameras frantically started to attack Richard Michuk overwhelmingly.

  His words can almost decide Moody's fate, and it is also the big news that reporters have been waiting for for a long time. Therefore, as soon as he finished speaking, Al Fran showed a playful smile on his face.

   "What is the specific situation, please give a detailed explanation to the witness!"

  He swung the gavel twice abruptly, stopped the commotion in the venue, and said while the iron was hot, "Tell me everything you know."

   "Yes, Mr. Chairman!"

After getting the lawyer's guarantee of innocence, Richard Michuk seemed to be willing to go all out, and said calmly, "My job is to rate investment banks and structured and derivative products issued by banks. The method used It is Moody's internal evaluation model. I won't talk about the specific principles, it is a very complicated model."

"There have been several times when some customers sent their products over for evaluation, and the grade evaluated according to this model was AA grade, but when it was finally sold, it was AAA grade, which is the highest grade. It's very odd to me that it didn't happen once or twice."

   "Since you are aware of the problem, haven't you taken corresponding measures?"

  Al Fran was almost ecstatic in his heart at this time, and he finally caught Moody's handle. Immediately, he followed the other party's words and continued to ask, "You should also know that this is not in line with professional ethics?"

   "Yes, Sir!"

Richard Michuk paused, and continued to answer, "After discovering the problem, I reported it to my superior as soon as possible. But it is strange that after that, the product evaluation of these customers , I was left out. It didn’t improve until I left.”

"what do you mean…"

Al Fran was almost about to applaud Richard Michuk in his heart. He barely suppressed the ecstasy pouring out of his body, and continued to ask pretending to be calm, "You mean, during this process? Is there some ulterior insider trading, or is it a violation of professional ethics?"

   "I didn't say that!"

After whispering with the lawyer for a while, Richard Michuk finally gave a negative answer, but then he added, "According to my personal guess, something might happen in private, otherwise they would You won’t hide it from me, the person in charge.”

   "Good! Good! Good!"

  Al Fran shouted three times in a row, and continued to ask regardless of his gaffe, "Now there is one more question. Who are the clients you mentioned?"

   "Goodman, UBS, and Merrill Lynch!"

  Regarding this question, Richard Michuk answered directly without thinking, and then he realized something, and added, "It's not Merrill Lynch anymore, but Merrill Lynch."

   "You can go down!"

  His answer made Al Fran very satisfied. He was so satisfied that there were a hundred and eight thousand pores all over his body, and there was no one who was not cheering. Finally, he caught Moody's handle. If it wasn't in the solemn hall, I'm afraid he would have jumped for joy.

   "This is bad!"

When Richard Michuk began to speak, Dean Bendtner began to tremble uncontrollably. When the other party finished speaking, his whole body trembled like sifting chaff, and it became impossible to even sit. question.

"relax!"

   Seeing his appearance, Zhong Shi couldn't help but patted him lightly, and comforted him, "Don't worry, the matter is far from the end!"

   It's strange to say, and I don't know what magic power Zhongshi has in his hand, but with such a light pat, Dean Bendtner's body immediately calmed down.

   Thank you book friend Dream Come True 7882 for voting monthly! Thanks to the book friend World-Class Top of the World for the reward! PS: New Year's Eve marks the end of the year, and the horn of the New Year is about to sound. At this moment of celebration, the author still insists on writing a chapter. The reason for this motivation lies in everyone's enthusiasm for this book Book uninterrupted support. In the past year, too many unsatisfactory things did happen, which caused the book to be interrupted many times, which is also helpless. However, the author is gratified that after so many ups and downs, it is not easy to persist in writing this book to this day, all thanks to everyone's perseverance in this book. The author would like to express his gratitude to all the book friends who have supported this book all the time. I wish you a happy life in the new year~www.readwn.com~ Happy, and don’t forget to continue to actively vote for this book, thank you!

  (end of this chapter)