None of this exactly came as news. The news was that a living, breathing Goldman employee had said it. There was also, between the lines, a fresh hope: Goldman had employed an idealist! For a decade!
That was pretty much my reaction to the Department of Justice’s curiously underwhelming complaint against S&P for misrating subprime-mortgage-backed securities in the run-up to the financial crisis. Wait: S&P got paid to rate deals, and wanted to rate more deals and get paid more, so it rated deals favorably? TELL ME MORE. But then it is enlivened by an occasional cameo from a quant truther whom you would not have expected to exist inside S&P. Like Executive H:
Or Senior Analyst C:
Haha what? You can tell that the DoJ is getting its analytical framework for this case from those quant truthers, but that framework is dumb. Read more »