6. Moody’s Investors Service and Standard and Poor’s adjustedthe way they graded securities after Goldman Sachs Group Inc., UBSAG and at least six more banks pressured them, according to a U.S.Senate report. “The world’s two largest bond-ranking companies madeexceptions to rules when bankers asked for better safety ratings oncomplex mortgage-backed securities, the Senate PermanentSubcommittee on Investigations said yesterday. When Moody’s andS&P changed their assessments of hundreds of those bonds inJuly 2007, it helped trigger the financial crisis, the panel said.The ratings agencies weakened their standards as each competed toprovide the most favourable rating to win business and greatermarket share,” according to the report. This occurred in 2007 andwas in part responsible for the Global Financial Crisis – discussin class.
