Investors relied on the judgment of credit rating agencies because
A) credit rating agencies are supposed to be the experts in evaluating credit risk.
B) information directly available to investors on mortgage pools was insufficient.
C) credit rating agencies are supposed to perform a thorough due diligence before rating a given security.
D) credit rating agencies are supposed to be the experts in evaluating credit risk, and they are supposed to perform a thorough due diligence before rating a given security.
E) All of these are correct.
Correct Answer:
Verified
Q2: Which of these regulators were aware of
Q3: Which entities worked as second party consolidators,
Q4: According to former Federal Reserve Chairman Alan
Q5: Some observers claim that the U.S. Federal
Q6: Rating agencies were exposed to a conflict
Q7: In simple terms, the securitization process is
A)
Q8: Goldman Sachs' GSAMP Trust was able to
Q9: Early in 2008, mark-to-market accounting provisions caused
Q11: Mark-to-market accounting is usually related to all
Q15: The 1999 Gramm-Leach-Bliley Act allowed banks to:
A)engage
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