This Won't End Well

Moody's just disclosed that it received a Wells notice from the SEC in March.

This means that they are in the SEC's cross-hairs, and that a potential "enforcement action," is likely.

You have to figure that once the SEC starts turning over rocks, they will find more, and for a company whose only capital is their credibility, it could be in trouble very quickly.

Seeing as how we already have evidence that all the major credit rating agencies are corrupt, there could be a domino effect.

This is going to make the collapse of the monoliner bond insurers look like a picnic.