Rating agencies do make mistakes, but still carry weight - expert

International rating agency, Moody's Corp, has agreed to pay $864 million to settle with the United States government over signing low-risk ratings to very high-risk mortgage investments, which led to the 2008 financial crisis.

Moody's admitted error of judgement and that it did not follow the correct procedure.

Argon Asset Management chief investment officer, Thabi Leoka, looks at how this will affect Moody's credibility.

Leoka says the problem is that rating agencies are self-regulatory and no one controls them.

Listen to the interview below for more information...


This article first appeared on 702 : Rating agencies do make mistakes, but still carry weight - expert


Recommended

by NEWSROOM AI
Read More
Can South Africa avoid a downgrade this year?

Can South Africa avoid a downgrade this year?

Financial Warren Ingram, says South Africa must take heed of concerns raised by rating agencies last year.

South Africa counts down to last rating agency announcement today

South Africa counts down to last rating agency announcement today

Standard & Poor’s Global will today announce whether it is downgrading South Africa and analyst predicts it will remain unchanged.

'Leaders shouldn't be destructed from urgent need for inclusive economy'

'Leaders shouldn't be destructed from urgent need for inclusive economy'

Standard Bank CEO says changing country's leadership shouldn't destruct leaders from an urgent need to generate fast growth.

Fitch keeps SA credit rating unchanged

Fitch keeps SA credit rating unchanged

Fitch has listed a number of issues, including increase in political risks standards of governance, as factors to its decision.

All eyes on South Africa ahead of Moody's and S&P credit rating review

All eyes on South Africa ahead of Moody's and S&P credit rating review

The economy has been under pressure over the years with stagnant growth and growing unemployment.

A guide to how National Treasury works

A guide to how National Treasury works

Neo Leshabane describes to #NightTalk's Sizwe Dhlomo how National Treasury works.

5 things currently driving the rollercoaster rand

5 things currently driving the rollercoaster rand

It’s up! It’s down! It’s never flat. Treasury One CEO Hennie de Klerk discusses the five major drivers of SA's volatile currency.

Moody’s assures SA it won’t downgrade (if economic growth holds up)

Moody’s assures SA it won’t downgrade (if economic growth holds up)

The Money Show’s Bruce Whitfield interviews two senior economists who read between the lines.

Ratings agencies cast doubt on governance at SOEs

Ratings agencies cast doubt on governance at SOEs

Moody’s has placed the ratings of five SOEs on review for downgrade over mounting debt, political infighting and poor leadership.

Popular articles
We're not just cyclists - CT man turns punch-up with driver into safety message

We're not just cyclists - CT man turns punch-up with driver into safety message

He was punched in the face by a motorist last week and tracked the driver down for a meet-up, instead of laying charges.

7 suspects arrested in Joburg heist

7 suspects arrested in Joburg heist

EWN Reporter Barry Batemen says eight people including two bystanders were hurt in the heist.

[WATCH] The spectacular moment AB de Villiers bent the laws of physics

[WATCH] The spectacular moment AB de Villiers bent the laws of physics

The world now knows never to underestimate the athletic form of SA cricketer AB de Villiers after this gravity-defying catch.

What's better than sex with your partner? Sex with YOURSELF! #MasturbationMonth

What's better than sex with your partner? Sex with YOURSELF! #MasturbationMonth

It's time to dim the light, lie back, relax and enjoy a bit of one-on-one time - with yourself!

[LISTEN] Dailene, the lady behind the video from Thursday's heist in Boksburg

[LISTEN] Dailene, the lady behind the video from Thursday's heist in Boksburg

Another heist was carried out in Boksburg on Thursday morning and led to five people being arrested.

Blind athlete sues popular winery after guide dog barred entry

Blind athlete sues popular winery after guide dog barred entry

Paralympian Hendri Herbst will take Durbanville Hills to court after his guide dog was denied entry inside the restaurant in 2014.

Health Minister proposes scrapping of medical aid co-payments

Health Minister proposes scrapping of medical aid co-payments

The eradication of medical aid co-payments is one of a number of changes to the medical aid scheme proposed by Aaron Motsoaledi.

[LISTEN] Is it Yanny or Laurel? Test your ears!

[LISTEN] Is it Yanny or Laurel? Test your ears!

What's Gone Viral with Khabazela brings you tweets, posts and YouTube videos that have social media talking.