R&R’s Sylvain Raynes is quoted in a New York Times article regarding disciplinary action by Moody’s against employees alleged to have violated the company’s code of conduct in rating European securities.
Article excerpt:
“Already under intense scrutiny for its role in the credit crisis, the Moody’s Corporation said Tuesday that some employees had violated its code of conduct in rating complex European securities.
“The company said that it would discipline and possibly fire employees who had been involved in rating the debt, which are known as constant proportion debt obligations. Separately, Moody’s said it was replacing the executive, Noel Kirnon, who was in charge of its structured finance business at its subsidiary, Moody’s Investors Service…
“One former Moody’s analyst who has worked with Mr. Kirnon praised him and said he appeared to be taking the fall for mistakes made by others. ‘He was a very thoughtful and very competent analyst,’ said the former analyst, Sylvain Raynes, a financial consultant who has been critical of the ratings firms.”
“Moody’s Says Workers Rated Some Securities Incorrectly,” New York Times, July 2, 2008
One Comment
I don’t know Kirnon at all. That said, he looks like a sacrifice to me.