Tuesday, March 8, 2011

That's "excessive entertainment"?

Now that, as has been perhaps mentioned, the horse is stolen, Rick Ketchum of the Financial Industry Regulatory Authority wants bond issuers to know that "excessive entertainment" of bond raters will not not not be tolerated. Per the Bond Buyer, "excessive entertainment" consists of depravities such as treating rating company officials to "upscale restaurants and Broadway shows".

So, OK, it's a good rule to make. You don't ever want applicants buttering up the applied-to. But a speech like this is kind of inoculation by faint criticism. I mean, it's implying that bond raters muzzled their shit detectors through the entire middle of the fraught two-thousand-oughts merely to wangle good tickets to "Cats". Does that make sense to you?

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