Sylvain Raynes, an ex- Moody’s vice president of the ABS group, agrees with the agency’s whistleblower Eric Kolchinsky, who said that Moody’s is still issuing inflated ratings.
In an exclusive interview with The Business Insider, Raynes said that Kolchinsky is right on the money, and this pattern of behaviour has been going on for years at Moody’s.
Raynes raised concerns about ratings to his superiors several times when he was at Moody’s.
“Moody’s should be terminated right now. They need to be put out of their misery, and the CEO should resign now,” he says.
Talking about the deal Kolchinsky raised questions about, Raynes qualifies it as “nonsense.”
“They needed a Baa2 rating to sell it–no one would buy a deal like that right now,” he said.
Asked about why Moody’s-–which has come increasingly under fire in recent weeks–is still in business, Raynes says: “It’s like prostitution. It’s a crime but it’s feeding a need.”