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Moody's Receives Wells Notice, SEC To Commence "Cease & Desist" Proceedings Against Rating Agency
And now for today's bombshell - lietarlly at the very end of Moody's 10-Q filed last night, we find this stunner:
On March 18, 2010, MIS received a “Wells Notice” from the Staff of the SEC stating that the Staff is considering recommending that the Commission institute administrative and cease-and-desist proceedings against MIS in connection with MIS’s initial June 2007 application on SEC Form NRSRO to register as a nationally recognized statistical rating organization under the Credit Rating Agency Reform Act of 2006.
Well at least it took Moody's under two months to report this massively material development, which while we are not positive on how to read the C&D action on the NRSRO registration, could mark the beginning of the end for the rating agency. If the firm is enjoined from providing additional rating research should the SEC action find fault and proceed with a lawsuit, it would mean game over for the business. Egan-Jones: it's IPO time.
We will be shocked, shocked we tell you, to find that Mr. Buffett has sold out his entire position in MCO when BRK's next 13-F is filed.
h/t Jing
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Another crack in the dam, it seems.
Or a crack in the damned?
Or cracking down on the damned.
Or, just the damned cracking up.
Or a snap, crackle, pop. The economy krispies
speaking of dams
Canadian beaver dam can be seen from space http://www.calgaryherald.com/life/outdoors/Canadian+beaver+seen+from+space/2994056/story.html?id=2994056#ixzz0nMey3MJfSpeaking of Beaver Dams
http://www.google.com/imgres?imgurl=http://thetalkofshame.files.wordpress.com/2008/10/chastity-belt.jpg&imgrefurl=http://stephiblog.wordpress.com/2009/04/17/female-self-defence/&usg=__oZenqelO0yquqioCVsExKmLZaS4=&h=300&w=303&sz=55&hl=en&start=1&um=1&itbs=1&tbnid=CEPObPBKtJeD8M:&tbnh=115&tbnw=116&prev=/images%3Fq%3Dchastity%2Bbelt%26um%3D1%26hl%3Den%26sa%3DN%26tbs%3Disch:1
Damn, that cracked me up. Now let's all cram the deck
Naw, the damned will just keep doing crack. We've still got two rating agencies to bribe!
Uncle Warren can put a stop to crack with some home spun transparency...
Would you really want to view that decrepit, wrinkled ol' crack. It would make the entire industry put down the pipe and go to rehab...
Worked for Amy W... isn't she still in leaky tit job rehab?
Any chance of Moody's downgrading itself in a timely manner??
Beautiful. I'm short Moody's.
"Go Now", The Moody Blues
http://www.youtube.com/watch?v=qLgdcGEqgcw
Not entirely right. We are not still in love with them.
How bout this:
Gold Dust Woman, Fleetwood Mac:
http://www.youtube.com/watch?v=x6hkY4VvQAA
Rock on, gold dust woman
Take your silver spoon
And dig your grave
Heartless challenge
Pick your path and I'll pray
Wake up in the morning
See your sunrise, loves, to go down
Lousy lovers, pick their prey
But they never cry out loud
Did she make you cry
Make you break down
Shatter your illusions of love
Is it over now, do you know how
Pick up the pieces and go home.
Rock on, ancient woman
Follow those who pale
In your shadow
Rulers make bad lovers
You better put your kingdom up for sale
Did she make you cry
Make you break down
Shatter your illusions of love
Is it over now, do you know how
Pickup the pieces and go home.
Nicely played.
mmmmhhhhhh..
that was what I considered music before I gave up on wordy 3-5 minute songs completely.
Them and CSN.
:-)
Ah, but what of Young? Does he not make your grade?
Nope MsC, there is something about the three part harmony that a fourth cannot fit into.
Trines and octaves, betwixt them lie all laws of creation and harmony.
Add a fourth or a ninth and its harm-only!
;-)
That was the Moody Blues? What happened to them between then and toward the later stages of their career?
Grandma: they looked like such nice boys.
From clean cut to sex, drugs, and rock & roll!
I am thinking this is more than "a teachable moment" thing. I am thinking uncle Warren knew about this and dumped his holdings.
+1
Warren totally had the inside track on this. A shame he's not worthy of his hero status, but that's been known for some time.
This means one of the following:
I don't see a third option...
What you takin' bout Willis?
MoFo is still a hero!
Likes to make money the old fashioned way, and that is, 'anyway he can'.
You don't get rich dreaming about sunshine, lollipops, and rainbows.
It takes scheming, conniving, luck, and a little insider information.
Such a shame it's a crapshoot without insider info.
Wall Street Motto:
"Profit is other people's ignorance".
Pity that Buffett doesn't come under more scrutiny in his dealings.
Bullish. Can't downgrade debt if there's no rating agency.
LOL!! Or:
"Cease and Desist" from downgrading shit European debt and junk bonds. Fall in line with "hope" strategy.
exactly
Oh Fuck! I suspect you have something there.
That was my first thought.
The system is doomed when there is this much cynicism on the streets. The real economy goes Greek (underground and off the books) when there is this much cynicism on the streets.
Dear Catullus
We have an open post seeking our new Chief Economist. Give us a call
Sincerely yours
Federal Reserve Bank Chairman
Ben Shalom Bernanke
My first thought too.
I wouldn't put it past the SEC to be gunning for taking over the duties of the rating agencies. We'll probably see some arguments surfacing soon, that private industry has no right to give credit ratings.
Would that also expand their power to watch porn? Taking bribes can pay for some serious porn subscription action.
I know the porn jokes are getting old, but hey...they heaped this on themselves.
That's basically what getting and keeping power is all about: unlimited porn.
Interesting. they should have filed an 8-K when they got the notice as this is a material development. More interesting is the question of what the notice is about. It looks like not everyone at the SEC has been surfing porn LOL.
Now the SEC can hire GS to rate all the sovereign debt. Let's face it GS is as objective as Moody's.
+1 Funny!
Moody's came up a little short on last months payment to the SEC.
Morrie: Henry, you're a good kid, I've been good to you, you've been good to me. But there's something really unreasonable going on here. Jimmy's being an unconsionable ball-breaker. I never agreed to 3 points on top of the vig! Am I something special? Some sort of schmuck on wheels?
Henry Hill: Morrie, please! You borrowed Jimmy's money, pay him.
Morrie: I never agreed to 3 points on top of the vig! What am I, fuckin nuts? Come on!
Henry Hill: Are you gonna argue with Jimmy Conway? Just give him his money so we can get the fuck outta here!
Morrie: Hey! Fuck 'em! Fuck 'em in the ear! What are you talking about? Fuck 'em in the other ear, that son of a bitch! Did I ever bust his balls? Did I? Did I? I could've jumped the dime a million times, and I wouldn't have to pay tip!
Henry Hill: Come on, Morrie, you're talking crazy, stop it!
Jimmy Conway: [Grabs telephone cord and chokes Morrie with it, then his wig falls off and Henry starts laughing] You got money for that fuckin commercial. Fuckin' commercial, you don't got my money, you don't got my fuckin money, huh?
Alas, I long for the bye gone days of good 'ol fashioned racketeering....It was loaded with humor.
I really wish Benji wore a toupée...
+ 10
It's now clear to anyone with a brain that Uncle Warren is one of the banksters.
That has been clear for a while. Mr. Ethics, Mr. "anti-Wall Street," Mr. Middle America. Pathetic pile of merde.
"Paging Dr. Buffett.... paging Dr. Buffettt.... Patient is critical... Need some positive comments in the media ASAP"
He's busy killing and poisoning kids in the 3rd world with Mr. Gates.
Actually they're "just" making them sterile with their vaccines. But they know what's best for the world.
Lovely Put volume for May and June.
Ah, such a shame. Hard to tell if they're being punished for years of shitty puffed up ratings or the current occasional truthful rating. Couldn't happen to a nicer bunch of people with a moral compass that always points at the easy money.
LMAO.
Moody's Corporation:
Committed to excellence since March 18, 2010.
+Superb!
+100
Nice coincidental volume spike on the 18th.
But ... that would imply insider trading on material developments!
Not in America, sir! We have laws for things like this!
There is "yeah we know they suck" fear and then there is "officially they suck" fear. Very different stage of the illness.
/ a toast /
"To the many days ahead, which make May 6, 2010 pale in comparison."
I'll take the contrarian view: Moody's a buy!
I don't think so. Watch the short ratio go up to 15% from 12% in one week. Target 18.50 within 1 month.
Well, Sheeple, there was a time I woulda agreed with you. But even if they hit your .01 bid that we saw so many of Thursday and by some voodoo magic Moody's were to get off, they would just bust our trade. Even a real casino pays off the occasional winner. Now these fuckers are trying to welsh on the few playas they got left.
This is gonna shake the bond markets, no?
LoL.... I guess after WB's support of GS, TeamBO decided to put a shot across WB's bow and begin distanceing themselves....
It's always interesting to see where the next "unseen" comes from.
Wonder if this had anything to do with Thursday's sell orders?
HCSKnight
Warren Buffet dumps $30 million of MCO stock right after Moody's got their notice.
http://www.secform4.com/insider-trading/1059556.htm
Another win for Einhorn.
Ray McDaniel better kneel and pray that $2.9M can buy a good enough lawyer.
"Grandpa Buffet" is the ultimate example of a wolf in sheep's clothing.
Moody gets a Well Notice on March 18 and Warren Buffet goes and sells about 1 million shares within 3 days. Wonder if he was told about about the Well Notice. If so, insider trading. he was trading on inside information.
Just more outstanding work by ZH and commenters that would have people swinging from lamposts in any civilized country.
Son.of.a.bitch
Are the junkyard dogs that are the federal govt turning on their masters (Wall St)? It would make sense, as the panic sets in over the anger around the globe in the peasants and serfs. How will the war progress? Is it war or psyops?
Is it:
International bankers
Central banks
Financial institutions themselves
vs.
Politicians
lazy-ass Regulators and govt employees
Unions
OR
International bankers
Central banks
Financial institutions themselves
Politicians
lazy-ass Regulators and govt employees
Unions
vs.
everybody else, you and me, the cannon fodder
OR
both of the above?
The 2nd one --
The IMF/World Bank/FED/JPM/Rothchilds/CFR/Fabian manipulators
using the freebie-addicted Pols and public
vs.
productive members of society that don't support their agenda
Fortunately, the giants may have overreached, and there is a slim possibility that events may run away from them.
Its a matter of who thinks who's the master of who.
Banksters can grease the skids, but unless they have their own private army behind them to back up their play they're totally up shits creek.
Only one group of people can call in the US Marshals/FBI/Secret Service/CIA/etc. to conduct raids and detain (arrest) criminals.
And, there's no way on God's Little Acre that the politicos are ever gonna give up that power. All the banksters can do is target them at election time. (Although some have speculated that the Kennedy assination was a result of his desire to eliminate the Federal Reserve.)
So if the banksters believe for one second they have the upper hand they are severly delusional.
But, all these assholes are nothin' more than trannie whores. They all went to the same IVY League schools, all engaged in various forms of unhibited sexual adventures with each other, and all have checkered pasts that keep them doing the bidding of the monied elites who have opened doors for them since day one. (ahem, does this sound like Obama to anyone?)
Another prime example is Little Timmy Gieghtner. Mr. Tax Dodger will do anything asked of him over at Treasury to keep from spending time in Federal Prison. With his delicate nature his only chance of survival is to become a Queen.
One has to wonder if this has the potential to trigger repudiation events.
Yesterdays scare in NYC was another dry run to create fear. USA is slowly becoming the UK
EBN - Comply
http://www.youtube.com/watch?v=-w67DUjx7q0
Yes, the US media is already reporting how many CCTV cameras there are in UK and how you need them in NYC.
I know its easy to be critical and pessimistic about the SEC, but I applaud this move. Its long overdue. Getting rid of the corrupt ratings agencies will bolster market confidence, but it is probably too little too late. I think what we fear is that they will replace them with another inadequate and corruptible institution.
Buffet has been scaling out of his moodys position for some time now, while saying they did nothing wrong (sound familiar? GS).
"bolster market confidence". Yeah, that's what we need.
Technically, I could execute Lord Blankfein, and I wouldn't have done anything wrong. Unless it can be proven. And I get caught. And there is enough evidence to indict. And, if found guilty, 12 jurors convict me. And I don't appeal.
So, technically, Warren Buffoon, isn't 'wrong'.
I only hope all those "idiot" gold bugs that have been hoarding the barbaric relic understand the awesome responsibility that will soon be thrust on them as they become the new holders of the physical trust.
Perhaps your missing a significant point.
The change of the guards
Soros More Than Doubled Gold ETF Stake in 4th Quarter
http://www.bloomberg.com/apps/news?pid=20601087&sid=aKs0jaibTSmY
Two scenario's. Find the short side of this scam or take immediate delivery of your take.
bwahahaha
Ye Gads!
Is that hope I smell?
A fragrance long since forgotten...
Or is that what they want you to smell to cover their stench? Who campaigned on that stuff you speak of?
Don't want to bust your bubble, but I am getting more cynical by the hour. They could be trying to save the economy and I would get in their way at this point because I am soooo suspicious of them.
I apologize for using the term "hope" if it in any way is/was associated with a sense of admiration for this administration, its' attorneys at large or the advancement of their pragmatic solutions that are destroying true wealth in the US, TRUST. AU gains more value when held, administered and dispensed in an environment of soveriegnty and this current regime has squandered their temporary positions of elected authority thus far, so it will fall on the soveriegn citizenry's shoulders to pick up where these bozos have failed. imo
pls see SteveNYC's post above
http://www.zerohedge.com/article/moodys-receives-wells-notice-sec-commen...
Damn, we just beat down optimism on this site, don't we.
Blanket party!!!!
AM says: "Ye Gads! Is that hope I smell?"
No, it's actually the smell of bitter almond
I'm appalled - who are we supposed to go to buy the AAA ratings whenever we need them?
How is this NOT a material event triggering the mandatory filing of an 8-K under 8.01??????
Can anyone smell the aroma of freshly shredded documents?
ditto....somewhere there's a shredder running full bore, and my guess is trucks are lining up to dump...anyone got any access to satelite imagery?
Deep Shah
I guess maybe the Europeans need their own "independent" rating agency after all...
This stuff scares people away from wall street...
New York City Police know the next Car Bomb
>>> Will Go Off ...
That will hurt the markets too. ...
That's it - I'm naming my new band The Barbarous Relix.
+10
THE RATING AGENCIES
(The Adams Family Song)
WilliamBanzai7
They're sleepy and they're stupid,
Mysterious and crooked,
They're all together shakey,
The Rating Agencies.
Their models are a screa-um.
When people come to see 'em
Their living in a drea-um.
The Rating Agencies.
Moody's
Snap snap
S&P
Snap snap
Fitch
So get a Wall Street witch's shawl on.
Conflicts? Pay their fees to get them crawlin.
We're gonna pay a call on
The Rating Agencies.
+10!
Haven't been around in a bit but all is relatively well.
Just wanted to stop by to say "hi" and note that Buffet is a pig masquerading in a teddy bear/red, white and blue/all american apple pie persona.
kiss kiss†
bye bye for a while, don't worry about me.
Hope your doing ok deadhead. Missed ya.
I wish you dancing bears and miracle tickets Mr. Head.
I likes and misses me deadhead. Been wondering about you. Hope you are well.
Thanks all!
I am working again and cannot access any internet during the day, etc..... still adjusting to a much different and more restrictive routine than my previous work life but am happy to have work.
in case anyone is wondering, it is still a depression out there as far as i'm concerned...... good news is the family is well and i do spend more time praying for those in very difficult situations right now.
Remember deadhead, universe always tends towards equilibrium.
PS
Im happy you are finally working. Drop by some more if you are not to tired when the workday is over.
Dude! People have been worried. :)
Wells Notice...fine example of gaming the justice system.
Q. And just who do you think are the gamers?
A. The best and brightest that can be bought... wittingly or not doesn't matter. The job gets done.
Q. Who creates the rules?
A. [your answer].
[Optional Q. for those bewildered.] Who really creates the rules?
A. [your real answer?]
[Optional Q. if still bewildered.] Who creates the rules for you?
A. ?
http://www.youtube.com/watch?v=xTPVm8gv8fM
Speaking of bands. The current concept is quite simple. The playbook of ACTORS repeat this over & over again. Just like a market bubble, a small prick can cause chaos. New reform and restrictions to further their cause, hence the new bubble. The illusionist's have been exposed, they're having a hard time during the denial stage.
Giraffe in Quicksand - Thanks Nate. :)
http://www.youtube.com/watch?v=YEZJei6DD0o
The Playbook
Bauhaus - "Party of The 1st Part"
http://www.youtube.com/watch?v=9lwQRpBzbxg
Ever crush a bee, and it stung you ? Moodys: US sovereign debt to single A as a parting shot...
The SEC has comic timing. They should have pulled Moodys over five years ago and now this is the last thing we need this month.
Oh, and why the crack in the market on Thursday ? Simple reason: gravity.
Jules: You read the Bible?
Ringo: Not regularly.
Jules: There's a passage I got memorized. Ezekiel 25:17. "The path of the righteous man is beset on all sides by the inequities of the selfish and the tyranny of evil men. Blessed is he who, in the name of charity and good will, shepherds the weak through the valley of the darkness. For he is truly his brother's keeper and the finder of lost children. And I will strike down upon thee with great vengeance and furious anger those who attempt to poison and destroy my brothers. And you will know I am the Lord when I lay my vengeance upon you." I been sayin' that shit for years. And if you ever heard it, it meant your ass. I never really questioned what it meant. I thought it was just a cold-blooded thing to say to a motherfucker before you popped a cap in his ass. But I saw some shit this mornin' made me think twice. Now I'm thinkin': it could mean you're the evil man. And I'm the righteous man. And Mr. .45 here, he's the shepherd protecting my righteous ass in the valley of darkness. Or it could be you're the righteous man and I'm the shepherd and it's the world that's evil and selfish. I'd like that. But that shit ain't the truth. The truth is you're the weak. And I'm the tyranny of evil men. But I'm tryin, Ringo. I'm tryin' real hard to be the shepherd.
wondering in this case who the shepherd is? evil man? righteous man?
I gotta admit that at the first reading - this looked a lot like a posting from Mr. Ben D. Over. But a quick reality check via GoogleNews supports that vielleicht (pardon my Deutsch) Mr. Gross' most recent double-barrelled blast from PIMCO forced a politically-correct response from the GuvMint - perhaps a bit late to to Save The World. But au moins now the annointed agencies sont dans la merde.
Just another good reason to be a gold bitch.
Bitches unite!!!
Just another good reason to be a gold bitch.
I gotta say it feels pretty damn good!
Oh I am sure that sanctimonious prick Buffet knew all about it way before the public and has traded accordingly. Mr. "the economy is strong" should be tied to the tracks on his little railroad.
and the rest of the story
U.S. Debt Shock May Hit In 2018, Maybe As Soon As 2013: Moody's
http://www.investors.com/NewsAndAnalysis/Article.aspx?id=532490
Yeah we have transparency all right. Their motives for shutting Moodys down became so transparent that this kind of thing is where many ZH folks went first.
I don't know what is scarier, the idea that there is a conspiracy, or the idea there is not one.
I hope the administration is reading page two of that article:
Siccing the SEC on Moody's looks to be a desperation move that won't work.
so, are the other rating agencies at risk as well until they downgrade the entire market to 'junk'?
Do you know what I think? I think the dot gov law enforcement activity will ramp up as the economy rolls over in an attempt to quell rising public discontent. If this is the case, then the next logical question to ask is this: Is rising LE activity a reliable indicator of the proximity of a breakdown?
Or a lagging indicator, friend?
Maybe a simultaneous indicator. Everything's happening at once. A gruesome consommé of societal breakdown events.
Good point SWR.
I think a the number and ferocity of Taser Attacks (seems like the taser is the weapon of choice to subdue sheeple, it has such a "bolt of lightening" feel to it)) would be an excellent indicator.
And from my readings, that hockey stick moment is coming, just at the gentle curve up at this point.
nicely put.
Looks like Mr. Buffet is creating a RICO operation...
MOODY'S--THE CURE FOR ALL AILMENTS:
http://williambanzai7.blogspot.com/2010/05/moodys-pure-rattlesnake-oil.html
was this recent development considered 'unexpected' or 'expected'?
i couldn't tell from the article or comments
Wells notices = 8-K? Seems it's not as common as you would think (or hope), based on the 8-K rules (and interpretations of those rules) around 'materiality'. I've been very surprised by interpretations of materiality before. I would think a freaking ratings agency being directly challenged vis-a-vis their LEGITIMACY to rate is material. If not, you would think it became material when they saw the SEC's position with Goldman and the effect that's having on shareholders. But, truthfully, the blames lies with .gov
Gov could legislate that a Wells notice = 8-K within 48 hours. It's that easy.
After being an avid reader of SEC filings for ten years, I think the whole system of timeliness and materiality need to be revamped.
Some people think material means cloth.
Ray McDaniel is the Chairman and CEO of Moodys. On March 18th, the EXACT same day as the Wells Notice, he sells 100,000 shares (over a third of his holdings). This is the largest sale that he has reported in over 7 years, and it's his only sale since May of last year.
Coincidence or insider trading?
http://www.secform4.com/insider-trading/1195306.htm
All available federal LEOs are busy planting listening devices in my underwear drawer, attending pro-gun rallies, and infiltrating Tea Parties by posing as volunteer photographers. There are none left to investigate obvious crimes committed by wealthy political "contributors". Besides, the wealthy can afford to mount an effective legal defense and are therefore expensive and time-consuming to prosecute. Much easier to testi-lie some poor sop into a ten year federal stint. Higher case turnover and better for your career.
I will not hold my breath waiting for anyone to do anything about this.
I've uploaded a new DOW chart.
http://www.zerohedge.com/forum/latest-market-outlook-0
http://stockmarket618.wordpress.com
US debt shock may hit as early as 2013: Moody's
http://www.investors.com/NewsAndAnalysis/Article.aspx?id=532490
Could this be a veiled attempt to intimidate Moodys.....
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