WASHINGTON — Moody’s Investors Service conducts “virtually no surveillance” of its municipal bond ratings, despite its claims to the public and Congress that it robustly monitors all the securities it rates, a former chief compliance officer warned the Securities and Exchange Commission in a March letter. 

The letter, which was publicly released yesterday by the House Government Oversight and Reform Committee, could have broad implications as state and local finances continue to plummet during the recession.

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.