Moody’s Failed to Warn About Silicon Valley Bank’s Problems

Published by
The Street

By Luc Olinga The prestigious rating agency still gave the bank of startups an A rating until its collapse on March 10, repeating the same errors of the subprime crisis in 2008. Fifteen years after the subprime mortgage crisis which devastated the global economy, rating agencies continue to make the same mistakes. At least, this seems to be the case with the prestigious rating agency Moody’s Investors Service. Regulators shut down California’s Silicon Valley Bank on Mar. 10, after its US Treasury bets went awry, due to the interest rate hike by the Federal Reserve. Consequently, the Federal De…

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