Once upon a time phrases like “the appearance of impropriety” or “potential conflict of interest” was enough to cause apoplectic shock, resignations, terminations and investigations by Justice and the FBI. Trust was something both business and government garnered and guarded. Of course, once upon a time, what was good for the nation was more important than political power, national news actually engaged in investigative reporting, and men walked on the moon.
Whether actually engaged in the CDO (Collateralized Debt Obligation) market or not, no one trusts any of the ratings companies. The AAA investment rating has become worthless and meaningless. There is no trust in the market as government deregulation has begat anarchy.
Between lovely lip service and opposition parties’ obstructionism, the Congress, the Executive branch and the Judiciary have done nothing to change the perception of mass collusion. The fact that the former and present head of Treasury, the former and present Chairman of the Federal Reserve, and the former and this Presidents chief economic advisers were all former employees of one of the principle financial institutions in the middle of our financial debacle lends no confidence or credence to any proposed solutions.
Anyone and everyone involved with the CDO’s, Derivatives, and Credit Default Swaps have no business being anywhere in government this side of a Congressional Subpoena or Grand Jury investigation! The economy cannot be repaired until the market fundamentals are restored and one can’t get much more fundamental then basic trust in investment ratings.
Unfortunately, current and former members of congress have immunity from acts of legislative malfeasance. Blatant conflicts of interest are ignored by the media and Justice as former legislatures and regulators morph from government service to industry insider and from corporate lobbyist into regulator and government official. Public perception be damned!
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