Bank Investors Dismiss Moody's Cuts As Years Too Late-Bloomberg

Unsurprisingly the market seems to realize that the ratings agencies are simply reflecting the past as opposed to the future.  They were wrong when they gave the banks AAA and AA ratings, and they are wrong with many of them rated BBB even though they are sitting on double the capital that they had in 2007.  At some point these ratings agencies should be cut out of the credit process, and the best way to achieve that is to have them be paid by investors as opposed to issuers.  I doubt there is too much of a market for their services any longer if they had to actually make money from the people they are “supposed” to be helping.

http://www.bloomberg.com/news/2012-06-21/credit-suisse-cut-3-levels-as-moody-s-downgrades-biggest-banks.html