screwed up in such a major want to just go with the first three Moody’s ways. Doesn’t points would be useful for the American people . – JWT: not suggesting we settle on 3, but we should slim it down. Ferret out most relevant portions. BG wants to refine list to facts and find commonality and come back to the group. JWT try to draw some agreement around #5 as the nucleus. – PW: this is incomplete because heard back from other areas immediately went haven’t – to item 5 if what they did in other areas was simliary then this raises questions about – failure of asset backed securities. Keith: flawed models or flawed assumptions? Different AAA risk profiles? Some sort of description on who this bad information was used to create problems. and the result of it damage wise. (Staff should focus on this) DHE: came to conclusion that ratings did matter- we need to document the timeline/facts on how these ratings became so important relied on it too much due – – didn’t do diligence. (Staff should focus on this) PA: in bullet pt 2 but needs to be beefed up. – PA: Be carful to distinguish to distinguish what we know about standard products. BG: like capital arbitrage 9not regulatory arbitrage) PW: very little testimony from people saying they relied on the ratings. IF they did they – would be stupid. PA clear and evident. – 7. (The Derivatives Working Group will meet immediately after retreat sessions conclude today, from 3:45-6:00pm) 8. Break *Beverages served at the conference room (2:00-2:15) 9. Session Five: Discussion of List of Priority Institutions (2:15-3:15pm) Attached Background materials: Draft List of Priority Institutions (Lots of complaints that we need to end by 3:45 and are behind schedule) (3:29pm) Wendy presented the memo. PA: if you look at the context of our statute this –
Moody’s screwed up in such a major ways. Doesn’t want to just go with the first three points – would be useful for the American people . JWT: not suggesting we settle on 3, but we should slim it down. Ferret out most relevant portions. BG wants to refine list to facts and find commonality and come back to the group. JWT – try to draw some agreement around #5 as the nucleus. PW: this is incomplete because haven’t heard back from other areas – immediately went to item 5 – if what they did in other areas was simliary then this raises questions about failure of asset backed securities. Keith: flawed models or flawed assumptions? Different AAA risk profiles? Some sort of description on who this bad information was used to create problems. and the result of it damage wise. (Staff should focus on this) DHE: came to conclusion that ratings did matter- we need to document the timeline/facts on how these ratings became so important – relied on it too much – didn’t do due diligence. (Staff should focus on this) PA: in bullet pt 2 – but needs to be beefed up. PA: Be carful to distinguish to distinguish what we know about standard products. BG: like capital arbitrage 9not regulatory arbitrage) PW: very little testimony from people saying they relied on the ratings. IF they did – they would be stupid. PA – clear and evident. 7. (The Derivatives Working Group will meet immediately after retreat sessions conclude today, from 3:45-6:00pm) 8. Break *Beverages served at the conference room (2:00-2:15) 9. Session Five: Discussion of List of Priority Institutions (2:15-3:15pm) Attached Background materials: Draft List of Priority Institutions (Lots of complaints that we need to end by 3:45 and are behind schedule) (3:29pm) Wendy presented the memo. PA: if you look at the context of our statute – this
GKN%20Notes%20-%20Agenda%20for%20FCIC%20Retreat%20-%207-28%20and%207-29_1.docx