The first thing you need to know is that Jerry Brown, the California AG and former governor wants to be governor again and is running in 2010.
The second thing you know is that California has probably been hurt more than any other state by the crisis, both in terms of its investments and by the collapse of the real economy.
Thus it makes sense that Brown says he will subpoena the much-reviled ratings agencies as part of an investigation into their role in fueling the financial crisis. As we’ve argued, the complaints against the ratings agencies are almost total nonsense. It was demand for AAA securities that encouraged them to conjure up assets with these ratings, and besides it’s the job of the buyer to do their own due diligence, and not just depend on the raters for investment decisions..
Don’t hold your breath waiting for Brown to go after the Calpers investment executives (or the politicians) who help sew so much of the state’s mess.