The role of the rating company in the financial crisis is yet to be determined. You would think that all those 'A' graded papers that were worth nothing would be the subject of many lawsuits against them.
California Attorney General Edmund G. Brown Jr. today said that bond-rating firm Moody's Investors Service, part of Moody’s Corporation (MCO, click to receive alerts), is withholding evidence that could reveal its role in the housing and Wall Street meltdown,
Mr. Brown is going to court to try to force the Wall Street powerhouse to explain why it gave its highest ratings to "risky and toxic" mortgage-backed securities that ultimately cost investors and taxpayers billions of dollars.
Below are MCO straddles for May:
Computed with StraddlesCalc tool.
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