The latest subprime victim: Standard and Poor’s president Kathleen Corbet has resigned / been shown the door as criticism grows over that company’s role in the subprime meltdown. Devin Sharma is her replacement:
McGraw-Hill Cos., the parent of Standard
& Poor’s, said in a statement yesterday that Corbet, 47, resigned to spend
more time with her family. Her exit isn’t related to the current credit- market
turmoil, Steven Weiss, a New York-based spokesman for the company, said in an
interview. Sharma, 51, is executive vice president of investment services and
global sales.
S&P and Moody’s Investors Service
failed to downgrade bonds backed by loans to borrowers with poor credit until
July, when some had already lost more than 50 cents on the dollar. McGraw- Hill
shares have dropped 26 percent this year on concern that the rout in the credit
markets may crimp new debt sales, and U.S. Senate Banking Committee Chairman
Christopher Dodd said yesterday credit rating companies must explain why they
assigned “AAA ratings to securities that never deserved them.”“We may see more management shuffles in the coming months amid charges the
ratings agencies have been asleep at the switch,” said Tim Condon, head of
research at ING Groep NV in Singapore.
S&P Names Sharma President Amid Ratings Criticism – Bloomberg
Tags: Credit Crunch, Ratings, Revolving Door
