A devastating new report à that has received little notice à by the only major non-conflicted ratings firm left in the country (Weiss Ratings, Inc. from Palm Beach Gardens, Florida) concludes:
1. "A deeper understanding of the crisis can be achieved through an analysis of "buy," "sell," and "hold" ratings issued to companies that went bankrupt in 2002: A total of 50 investment banking and brokerage firms issued ratings to 19 companies that filed for chapter 11 in the first four months of 2002.... 94% of the 50 firms continued to indicate that investors should buy or hold shares in failing companies right up to the day these companies filed for bankruptcy. Among the 19 bankrupt companies, 12 continued to receive strictly "buy" or "hold" rating on the date of bankruptcy filing."
Weiss Ratings receives no financial compensation from the companies it rates, unlike S&P, Moodys, and Duff & Phelps. Here are its unbiased ratings.
"Among the 20 largest brokerage firms, 13 may be financially vulnerable if their finances deteriorate further, while seven have the financial wherewithal to withstand a severely adverse business environment."
Weiss Ratings gives low grades to JP Morgan Chase & Co, Lehman Brothers, Merrill Lynch, UBS Warburg LLC, Barclays Capital, Credit Suisse First Boston Corp. These firms have millions of customers who relied on their highly self-advertised, objective expertise. (For more details see www.weissratings.com)
There needs to be an aroused public to take control of their government and direct their public servants, before the November elections, to enact systemic action for reform, not phony legislation that allows crooked business as usual. For suggestions on what these reforms can be, log on to www.citizenworks.org.
By Ralph Nader
Ralph Nader is the leader of the Green Party in the United States and was a Presidential Candidate in 2000. http://www.nader.org
1. "A deeper understanding of the crisis can be achieved through an analysis of "buy," "sell," and "hold" ratings issued to companies that went bankrupt in 2002: A total of 50 investment banking and brokerage firms issued ratings to 19 companies that filed for chapter 11 in the first four months of 2002.... 94% of the 50 firms continued to indicate that investors should buy or hold shares in failing companies right up to the day these companies filed for bankruptcy. Among the 19 bankrupt companies, 12 continued to receive strictly "buy" or "hold" rating on the date of bankruptcy filing."
Weiss Ratings receives no financial compensation from the companies it rates, unlike S&P, Moodys, and Duff & Phelps. Here are its unbiased ratings.
"Among the 20 largest brokerage firms, 13 may be financially vulnerable if their finances deteriorate further, while seven have the financial wherewithal to withstand a severely adverse business environment."
Weiss Ratings gives low grades to JP Morgan Chase & Co, Lehman Brothers, Merrill Lynch, UBS Warburg LLC, Barclays Capital, Credit Suisse First Boston Corp. These firms have millions of customers who relied on their highly self-advertised, objective expertise. (For more details see www.weissratings.com)
There needs to be an aroused public to take control of their government and direct their public servants, before the November elections, to enact systemic action for reform, not phony legislation that allows crooked business as usual. For suggestions on what these reforms can be, log on to www.citizenworks.org.
By Ralph Nader
Ralph Nader is the leader of the Green Party in the United States and was a Presidential Candidate in 2000. http://www.nader.org