With reference to our earlier post "Solutions to Minibonds Saga", we would like to share with the masses on the initial cause of the trail leading to the collapse of Lehman and ultimately the man in the street suffers.People depend on these credit rating agencies to judge a stability of a firm before making a decision to invest certain products, but if these credit agencies do not do what they are supposed to do, the result is this Minibonds debacle. Check out this website on Credit Rating Agencies in nytimes.com .
Also, according to Fitch's (another well revered credit rating agency) website "fitchratingasia.com", page 3: It says that Lehman Brothers and Merryl Lynch's use of Fitch credit services reflect the importance and acknowledgement of Fitch's presence in the rating industry, but what happened? One went bankrupt and the other was bought over by BOA.
I have attached a screenshot for your reference. All these goes to show that in the world of capitalism, greed and self gratification is on the top of almost every organisation's mind: What about the needs of the man in the street?We the servants of Justice Bao Gong will strive to spill the beans of all who dwells in injustice and will research and analyse to endeavour to find solutions and educate the less fortunate and the poor. Do leave us your comments and opinions.
Your humble servant
Justice Bao Gong
Source: http://www.fitchratingsasia.com/media/Fitch_A_Broader_Perspective_US.pdf
References:
fitchratingasia.com
nytimes.com
Solutions to minibonds
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