Here in America that certification is done by "the market" (S&P and Moody's). They gave the CDOs AAA ratings. Of course the fact that they were paid by the same companies that were submitting the CDOs didn't effect their judgement whatsoever. Except they found the emails where they said "go easy on these guys otherwise we lose their business". Oh you mean they made the ratings up? Yea. But that's legal, since the ratings came with no guarantees. They are the "free speech" like poetry. Welcome to America. Sucker.
Re:Why the SEC Won’t Hunt Big Dogs
by yummyfajitas on Wednesday October 26, 2011 @08:04PM
(#3160986)
You are very confused. Randomdata is describing the certification of banking deposits. In the US, this is done by the FDIC, a government corporation.
Was that not well understood beforehand? I'm Canadian, but our government will only certify certain investments. Everything else comes with the understanding that all of your money could be gone tomorrow. As such, we plan for such occasions. It is an expectation that an event like this will happen eventually.