10/1/2009

Moody's operated under a "culture of secrecy" and regulators didn't act quickly enough to investigate the quality of ratings put out by the firm and its competitors, according to testimony at a House Oversight and Government Reform Committee hearing on Wednesday. Lawmakers said they would expand a probe of the ratings industry and questioned why regulators didn't follow up on allegations that Moody's managers emphasized profits over ratings quality. "Can you imagine working at a place where the very act of writing a memo or sending an e-mail is suspect?" said panel Chairman Edolphus Towns, D-N.Y.

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