Financial Regulatory Forum

Former Moody’s exec warned U.S. SEC about firm

By John Manley
September 30, 2009
moody | ratings

moodys1    WASHINGTON, Sept 29 (Reuters) – The former head of compliance for Moody’s Corp <MCO.N> voiced concerns to regulators about the credit rating agency’s lack of surveillance of municipal securities, according to a document obtained by Reuters on Tuesday.
   “I feel that in the current economic environment this failure could have far-reaching systemic consequences,” Scott McCleskey said in a March 2009 letter to the U.S. Securities and Exchange Commission.
   McCleskey, who said he was Moody’s head of compliance until last September, said while in this role he became aware that virtually no surveillance was being performed on debt issued by states, counties and municipalities. (Reporting by Rachelle Younglai; editing by Carol Bishopric) ((rachelle.younglai@thomsonreuters.com; +1 202 898 8411)) Keywords: MOODY’S CONGRESS 
  
Tuesday, 29 September 2009 21:19:45RTRS [nWEN4159  ] {C}ENDS

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