US hearing postponed after Republicans got memo late
The US House Oversight and Government Reform Committee postponed a hearing into accusations that credit rating firm Moody's knowingly issued incorrect ratings, Reuters reports.
Republicans demanded more time to review a whistleblower's complaint that Moody's assigned high ratings to products, even over objections of its own analysts.
Former Moody's Managing Director Eric Kolchinsky, said in prepared testimony obtained by Reuters that senior managers at the company continued to favour revenue over ratings quality and were willing to dismiss or silence employees who disagreed with them.
Weak, short-staffed and bullied
Kolchinsky also said Moody's credit policy group was weak and short-staffed, and analysts were "bullied" by managers who overrode their decisions to generate revenue.
The hearing was halted when Republicans said they had not received a 14-page memo written by Kolchinsky until minutes before the hearing began.
The hearing was rescheduled for next Wednesday, Sept. 30.