PIMCO: Rating Agencies and Fake IDs

In his latest montly commentary, PIMCO's Bill Gross takes a look at the lack of common sense among the three main bond-rating agencies: Moody's, S&P, and Fitch.  Gross quotes his PIMCO colleague Paul McCulley when describing the 2007-2009 breakdown of the financial system as "a non-regulated drinking party, with the rating agencies handing out the fake IDs!"  

Moreover, Gross points out that the rating agencies still exhibit a lack of common sense in their recent ratings of bonds issued by the Spanish government and General Motors.  Click here for his commentary.  

Scott Middleton