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Moody's Waited A Year Before Fixing Ratings

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We're surprised as you are to hear ourselves parroting New York senator Charles Schumer but that's what it's come to: the truly shocking thing about yesterday's Financial Times report on Moody's screwing up the ratings on complex debt derivatives is that it took Moody's nearly a year to fix the problem after it was discovered.
"The ratings inaccuracies that were disclosed are deeply troubling," Schumer wrote in a letter sent to the Securities and Exchange Commission yesterday. "However, the fact that Moody's only downgraded these incorrectly rated products in January of 2008, nearly a full year after they became aware of the problem, is much worse, and is indicative of a culture of shirking responsibility that must end."
Moody's says it has employed Sullivan & Cromwell, the white shoe law firm right next door to Goldman Sachs, to conduct an external review. That's wonderful but, again, why did it take a report from the Financial Times to prompt the review?
Moody's launches review in wake of errors [Financial Times]