Consultant Robert Morgan told bankers at the Oct. 29 Eide Bailly seminar in Mankato, Minn., what many of us have suspected for a long time: The ratings game is rigged. Saying that field examiners have no authority, Morgan said regulators determine a bank’s rating before examiners ever get to the bank. Once the examiners are in the bank, “their sole job is to justify the rating,” he said. Was Mr. Morgan exaggerating?
Consider your answer in light of the comment Tim Koch made . . .
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