Moody’s had a conflict of interest they were receiving from clients. Moody’s CEO, Mr. McDonald, also stated when he was speaking in the hearing. Their business top priority is to put investors interests in the first place. At the beginning, Moody’s was in competition with other credit rating agencies, such as S&P and Fitch. Keeping in mind that Moody’s is a public traded company. In order to get lenders to use their services, Moody’s chose to lower their credit rating standards to compete with other rating agencies to increase their market share and profit. As a result, Moody’s was successfully increased their revenues and rising to the top of market. In additional, Moody’s was requested to rate the creditworthiness of different mortgage backed
