International rating agency, Moody's Corp, has agreed to pay $864 million to settle with the United States government over signing low-risk ratings to very high-risk mortgage investments, which led to the 2008 financial crisis.
Moody's admitted error of judgement and that it did not follow the correct procedure.
Argon Asset Management chief investment officer, Thabi Leoka, looks at how this will affect Moody's credibility.
Leoka says the problem is that rating agencies are self-regulatory and no one controls them.
Listen to the interview below for more information...