On October 22 the CEOs of the country's three largest credit rating agencies will testify about these agencies role in the financial excesses on Wall Street. Here's a quick intro to the three witnesses:
Deven Sharma, President, Standard & Poor's
Sharma took over as Chief Executive just over one year ago and in February he implemented a few key changes to the company:
The ratings agency says improving four key areas will better serve the public. It wants beefed up governance establishing a watchdog to ensure the integrity of the ratings process. Better analytics will also play a role enhancing the quality of its ratings analysis and opinions. The firm will provide more and better information to the public, clarifying the level of risk in an investment. And it wants to better educate market players about what a credit rating is and is not. Critics say the reform doesn't go far enough; one even called it window dressing.
Raymond W. McDaniel, Chairman and Chief Executive Officer, Moody's Corporation McDaniel has served as the Chairman and CEO of Moody's since 2005. In response to the slow growth of his agency in early 2008 McDaniel commented:
"There has been some improvement in credit market activity. I am, cautious, however about the sustainability of this environment," he said.
Revenue is coming from investment-grade companies and the analytics service, while speculative-grade and structured finance business remain weak, he said.
"Market confidence is still fragile."
Stephen Joynt, President and Chief Executive Officer, Fitch Ratings
Joynt joined Fitch in 1989 and became COO of the Board of Directors in 1997.
Steve is known inside and outside the company as an advocate of increasing transparency in all areas of the capital markets. He promotes the use of market risk analysis and credit modeling, together with fundamental credit analysis, to improve ratings usefulness in assessing investment safety and stability for investors and depositors throughout the world.