I love the smell of napalm in the morning… and today, it smells like victory.
Moody’s was just hit with an SEC Wells notice… as the SEC considers a recommendation to start an administrative case and enter a cease and desist order against one of Wall Street’s most hated.
And I must say… it couldn’t have happened to a more deserving company.
The SEC is alleging “false and misleading” statements in Moody’s application to become a nationally recognized rating agency back in 2007, as reasons for the notice.
At issue, according to a Moody’s filing, is the company’s 2007 statement that members of a European committee “engaged in conduct contrary to Moody’s Code of Professional Conduct.” The Moody’s filing fails to say with the committee members did, though.
If Moody’s gets a cease and desist (which we’re hoping for), they’re screwed three ways from Sunday. Short away.