"A report by the Senate Permanent Subcommittee on Investigations says UBS(UBS_), Lehman Brothers Holdings, Citigroup(C_), Bear Stearns, Morgan Stanley(MS_), Goldman Sachs(GS_), JPMorgan Chase(JPM_) and Nomura Holdings all asked the rating agencies to loosen standards, even though S&P and Moody's knew of the risky nature of the bonds.
"The report also states that "the most immediate cause of the financial crisis," was the July 2007 downgrade by Moody's and Standard & Poor's of several mortgage-backed securities. At that time, 90 percent of the triple A rated mortgage-backed securities issued in 2006 and 2007 were downgraded to junk status. "