QuickStockAnalysis.com

Moody´s stock looses 17% after rating error

In response to a recent Financial Times article, Moody’s has retained law firm Sullivan & Cromwell to do an external review of the agency’s process for rating European constant proportion debt obligations. Moody’s had rated complex debt products higher than warranted because of a glitch in its computer models but did not fix the error for nearly a year, despite senior staff knowledge. Meanwhile, U.S. Sen. Charles Schumer, D-N.Y., has called on the SEC to investigate the situation.

Oil price hits more than $135 a barrel in Asia

In Asia, oil reached a record high price of more than $135 a barrel today and then retreated. Concerns about supply, increasing global demand and a declining dollar are keeping crude futures moving up. Analysts are starting to question what will stop oil prices from increasing as they continue to set new records almost daily. Although there are technical indications in the futures market that crude might drop, few analysts are ready to call an end to the rally.

Most Brazilian companies cancel or postpone IPOs 

With nearly two-thirds of last year’s new stocks in Brazil losing money, most of the country’s companies planning initial public offerings have either canceled or postponed their plans. Banco Fibra, PST Eletronica, Norse Energy do Brasil and more than a dozen other companies in Brazil, which has the best-performing equity market in the world, have delayed or withdrawn IPOs this year.

UK better positioned to weather storm than US

Experian, the biggest credit information agency in the world, said U.K. banks started tightening lending standards two years ago, putting Britain in a better position to ride out the financial crisis than the U.S. Experian CEO Don Robert said the quality of credit portfolios in the U.K. is holding up, while the company has seen the housing market woes spread to credit cards and other areas of the market, resulting in “real evidence of the weakening consumer in the U.S.”

Judge says that SEC lacks authority to fine advisers who aid, abet fraud

A ruling by the District Court in Washington might make it more difficult for the SEC to fine financial advisers found guilty of aiding and abetting fraud. After finding Robert Radano guilty for the illegal activity, District Judge Colleen Kollar-Kotelly said under the Investment Advisers Act of 1940, the SEC does not have the authority to fine Radano. “What the judge is saying is that the statutory language to fine adviser aiders and abettors is not in the Advisers Act,” said Jane Stafford, managing member of Stafford & Associates.