Rating agencies do make mistakes, but still carry weight - expert

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...


Recommended

by NEWSROOM AI
Read More
Can South Africa avoid a downgrade this year?

Can South Africa avoid a downgrade this year?

Financial Warren Ingram, says South Africa must take heed of concerns raised by rating agencies last year.

South Africa counts down to last rating agency announcement today

South Africa counts down to last rating agency announcement today

Standard & Poor’s Global will today announce whether it is downgrading South Africa and analyst predicts it will remain unchanged.

'Leaders shouldn't be destructed from urgent need for inclusive economy'

'Leaders shouldn't be destructed from urgent need for inclusive economy'

Standard Bank CEO says changing country's leadership shouldn't destruct leaders from an urgent need to generate fast growth.

Fitch keeps SA credit rating unchanged

Fitch keeps SA credit rating unchanged

Fitch has listed a number of issues, including increase in political risks standards of governance, as factors to its decision.

All eyes on South Africa ahead of Moody's and S&P credit rating review

All eyes on South Africa ahead of Moody's and S&P credit rating review

The economy has been under pressure over the years with stagnant growth and growing unemployment.

A guide to how National Treasury works

A guide to how National Treasury works

Neo Leshabane describes to #NightTalk's Sizwe Dhlomo how National Treasury works.

5 things currently driving the rollercoaster rand

5 things currently driving the rollercoaster rand

It’s up! It’s down! It’s never flat. Treasury One CEO Hennie de Klerk discusses the five major drivers of SA's volatile currency.

Moody’s assures SA it won’t downgrade (if economic growth holds up)

Moody’s assures SA it won’t downgrade (if economic growth holds up)

The Money Show’s Bruce Whitfield interviews two senior economists who read between the lines.

Ratings agencies cast doubt on governance at SOEs

Ratings agencies cast doubt on governance at SOEs

Moody’s has placed the ratings of five SOEs on review for downgrade over mounting debt, political infighting and poor leadership.

Popular articles
Robots are already replacing financial advisors right here in South Africa

Robots are already replacing financial advisors right here in South Africa

But can they be trusted? Are they independent? Bruce Whitfield interviews Personal Financial Advisor Warren Ingram.

Madiba’s private secretary Zelda la Grange opens up about money (hers and his)

Madiba’s private secretary Zelda la Grange opens up about money (hers and his)

Bruce Whitfield interviews La Grange about her and Madiba's attitude to money (hopes and fears, successes and failures, etc.)

You’re either a ‘money slave’ or a ‘money master’ (says author of 'My Money')

You’re either a ‘money slave’ or a ‘money master’ (says author of 'My Money')

The Money Show’s Bruce Whitfield interviews Sugar Creek financial expert and author of “My Money” Gerald Mwandiambira.

How to make money through ‘buy-to-let’ (using very little of your own money)

How to make money through ‘buy-to-let’ (using very little of your own money)

Bruce Whitfield interviews Francois Janse van Rensburg, author of “Making Money through Buy-To-Let in South Africa".

Retirement: 8 biggest mistakes people typically make…

Retirement: 8 biggest mistakes people typically make…

The Money Show’s Bruce Whitfield interviews Galileo Capital Financial Advisor Warren Ingram.

UPDATE: Chilling WhatsApp from Marli van Breda's ex-boyfriend read out in court

UPDATE: Chilling WhatsApp from Marli van Breda's ex-boyfriend read out in court

Marli van Breda's ex took the stand in the trial of triple murder accused Henri van Breda.

3 easy questions could bag you R2000!

3 easy questions could bag you R2000!

WIN R2000! But only if you can prove you're a whiz of the MTN Biz Quiz by answering the following three questions...

Meet Errol Musk - father of Elon, the most innovative entrepreneur of our age

Meet Errol Musk - father of Elon, the most innovative entrepreneur of our age

Elon Musk, as you’d expect, hails from an exceptional family. Bruce Whitfield interviews his Capetonian father.