Markets

Blame Ratings Agencies, Not Goldman: Ratings Exec

Share

The ratings agencies are more culpable for the scandal swirling around Goldman Sachs than Goldman Sachs itself, the head of an independent ratings agency said Monday.

VIDEO0:0000:00
Rating Agency Risk

“They had the obligation for assessing the quality of the underlying securities and they rated them at the triple-B level and they were not anywhere near that,” said Sean Egan, president of Egan-Jones Ratings Company.

“Furthermore, on the securities issued by the CDO itself it shouldn’t have been anywhere near investment grade either," he said.

Egan-Jones, which competes directly with those other ratings agencies, rated ACA at B minus at the time of the Goldman deal.