What is the function of Ratings Agencies? The answer to that question was most pithily expressed thusly: might

“The function of a ratings agency is to visit the field at the end of the battle and shoot the wounded.”

-John Heimann, Spring 1998
(former U.S. Comptroller of the Currency and later vice chairman of Merrill Lynch and chairman of the Financial Stability Forum)

Sourced from Brookings

Category: Analysts, Really, really bad calls

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

4 Responses to “QOTD: Ratings Agencies Jobs”

  1. VRWC says:

    What Mr. Heimann says is true enough…. but he misses the REAL reason for the ratings agencies;

    To cover the collective rear ends of the asset managers who bet on the wounded and lost….

  2. T_S says:

    Hey great to see this has been known widely since 1998 and absolutely nothing has been done about it. Maybe we’ll solve it by 2025 or so!

  3. WFTA says:

    Brilliant. Thanks for posting.

  4. jritzema says:

    Heard the exact same quote about auditors from an accounting professor in the early 1990s. Have also heard it in reference to actuaries.