Get Paid Twice to Lie

Read the whole article on economist.com

BY MISREADING the risk in mortgage-backed securities and other “structured” products, the rating agencies Standard & Poor’s, Moody’s and Fitch played starring roles in the failure of finance. Their punishment? Oddly, the further entrenchment of their dominance, thanks to the Federal Reserve.

So, screw up any faith in your ability to rate securities, have the government start a program to buy up the toxic crap, and get the Fed to pay you 400 million to rate the same crap. I am in the wrong business! This is sick. Other firms should be allowed to bid for this work. I am sure there are hundreds of laid off bankers out there can actually earn a decent living providing a decent service to the Fed and the taxpayers: giving an accurate rating to toxic waste.

Read the whole thing here but hold your nose.