“The Justice Department last week went after Standard & Poor’s Ratings Services—not rival Moody’s Investors Service —with a $5 billion fraud lawsuit. Some former Moody’s employees think they know why.
“The Moody’s Corp. unit took careful steps to avoid creating a trove of potentially embarrassing employee messages like those that came back to haunt S&P in the U.S.’s lawsuit, the former employees say.
“Moody’s analysts in recent years had limited access to instant-message programs and were directed by executives to discuss sensitive matters face to face, according to former employees. The crackdown on communications came after a 2005 investigation by then New York Attorney General Eliot Spitzer into Moody’s ratings on some mortgage-backed deals, the former employees say.”
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