01/07/2009 05:12 am ET Updated May 25, 2011

Debt Watchdogs: Tamed Or Caught Napping?

"These errors make us look either incompetent at credit analysis or like we sold our soul to the devil for revenue, or a little bit of both."

-- A Moody's managing director responding anonymously to an internal management survey, September 2007.

The housing mania was in full swing in 2005 when analysts at Moody's Investors Service, the nation's oldest and most prestigious credit-rating agency, were pressured to go back to the drawing board.

Read more on New York Times