R&R Consulting’s Ann Rutledge notes that the financial crisis has demonstrated the need for new fraud risk models to facilitate sound economic decisions within the capitalist framework. Paradoxically, while improper use of securitization brought on the financial crisis, properly implemented securitization models could help revive the economy by recycling capital more efficiently and transparently. Read “The […]
R&R Consulting’s Ann Rutledge comments on the importance of updating structured security ratings — a service provided by R&R’s patented ABSTRAK technology — in “When Bond Ratings Get Stale” by Gretchen Morgenson, The New York Times, October 10, 2009.
The 2008 taxpayer bailout and a long string of corporate restructurings and downsizings have shifted risk from corporations to individuals. Most Americans were caught in a high-stakes Monopoly game where they didn’t know the rules. Read the full article on the Carnegie Council website.
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May 8, 2009
The revealing and esthetically pleasing chart that R&R’s Ann Rutledge produced to illustrate asset-backed bond default rates is featured by Felix Salmon in his Reuters blog. Reflecting the value of analyzing the past in dealing with the future, Ann’s presentation on the development of the credit crisis is also recommended on the Zero Hedge blog. Commenting […]
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April 11, 2009
R&R’s Ann Rutledge discusses how flawed securitization set off the economic crisis in the cover story of the current issue of National Journal Magazine: “Until the early part of this decade, Rutledge says, most of the blueprints for building structured securities were imperfect but honest. Sometime around 2002, however, fraudulent crews invaded the market by using […]
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March 20, 2009
The March 20 edition of The Wall Street Journal quotes R&R’s Ann Rutledge calling for rating agencies to develop new ways to rate debt as they benefit from the government’s bailout program: “[Rating agencies] are still paid for their ratings by the companies whose bonds they rate, a potential conflict of interest. And much-anticipated competition for […]
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February 13, 2009
R&R’s Ann Rutledge contributes to “House of Cards,” David Faber’s definitive report on how a subprime credit crunch turned into what may be the most severe worldwide economic crisis in a century. The program, initially aired on CNBC on February 12, will be repeated over the next few days. For show times and other information, […]
In her article on the RGE Monitor Web site, R&R’s Ann Rutledge discusses two myths that she sees offered as fact in a recent position paper by the Financial Economists Roundtable, “Reforming the Role of the Statistical Ratings Organizations in the Securitization Process.” Myth 1: The notion that SROs ever evaluated collateral. “Even the SROs […]
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December 5, 2008
The Securities and Exchange Commission’s long-awaited new rules for bond rating agencies will do little to alter the practices that helped lead to the financial crisis, experts claimed…. “The market has barely taken note of the SEC action because its impact is so limited,” said Ann Rutledge, co-founder of R&R Consulting…. “There are simple ways […]
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November 26, 2008
…Under the new Term Asset-Backed Securities Loan Facility, the Treasury will use taxpayer funds to protect the Fed against the first $20 billion of losses, or 10 percent, of $200 billion in exposure to AAA rated securitized consumer debt. “I am willing to believe that these things that are rated AAA might have a maximum 10 […]