We all talk about how the rating agencies were, in part, responsible for creating the mess of credit and credit instruments that caused this crisis.
After all, they are meant to be rating credit aren't they?
But I didn't realise exactly how bad a job these guys had done until I saw this quote:
“In January 2008, there were 12 AAA-rated companies in the world. At the same time, there were 64,000 structured
finance instruments, such as CDOs, rated AAA.”
Lloyd Blankfein, Chairman and Chief Executive of Goldman Sachs
Speech to the Council of Institutional Investors, April 2009
Jeez … now we know.