thoughts from Nom De Plumber …<\/strong><\/p>\n Insurers complain that the rating agencies were too loose<\/strong>, deeming too many credit-risky securities to be “AAA”. Same insurers, same rating agencies, and same securities…..but conflicting, simultaneous accusations. Hmmmm…….<\/p>\n Regulator to Rating Agency, Episode 1: “You were too lenient<\/strong> in your stress projections, leading investors to own securities with high principal losses. You must repent.” <\/p>\n Regulator to Rating Agency, Episode 2: “You were too stringent<\/strong> in your stress projections, leading investors to own securities with high capital charges. You must repent.” <\/p>\n Both episodes of this tragicomedy share identical regulators, rating agencies, stress projections, investors, and securities. PIMCO has been hired as Deux Ex Machina, to define a common rating-agency repentance for both.<\/strong> This is only the intermission; stay seated.<\/p>\n Nom De Plumber is a Nom De Plume<\/a><\/p>\n First, read this piece at Wall Street Journal Insurance Rule Adds Up to $5 Billion – By LESLIE SCISM – … Life insurers will need to set aside about $8.75 billion to back up souring home-mortgage bonds based on preliminary analysis provided to regulators by Pacific Investment Management Co., the officials said. The figure […]<\/p>\n","protected":false},"author":288,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"advanced_seo_description":"","jetpack_seo_html_title":"","jetpack_seo_noindex":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[4821],"tags":[],"class_list":["post-621357","post","type-post","status-publish","format-standard","hentry","category-news"],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9NivD-2BDT","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/mereja.com\/index\/wp-json\/wp\/v2\/posts\/621357","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mereja.com\/index\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mereja.com\/index\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mereja.com\/index\/wp-json\/wp\/v2\/users\/288"}],"replies":[{"embeddable":true,"href":"https:\/\/mereja.com\/index\/wp-json\/wp\/v2\/comments?post=621357"}],"version-history":[{"count":0,"href":"https:\/\/mereja.com\/index\/wp-json\/wp\/v2\/posts\/621357\/revisions"}],"wp:attachment":[{"href":"https:\/\/mereja.com\/index\/wp-json\/wp\/v2\/media?parent=621357"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mereja.com\/index\/wp-json\/wp\/v2\/categories?post=621357"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mereja.com\/index\/wp-json\/wp\/v2\/tags?post=621357"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
Insurers complain that the rating agencies were too stringent<\/strong>, downgrading these same securities and triggering higher capital charges.<\/p>\n<\/img><\/a>
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