February 2, 2012
James H. Gellert testifies on Rapid Ratings' early warning signals on MF Global alongside S&P and Moody's representatives. While S&P and Moody's issued MF Global investment grade ratings until days before its collapse, Rapid Ratings had been rating MF Global as high risk for over two years.
Click here to watch Gellert's prepared statements and hearing.
To read Mr. Gellert's opening remarks click below:
To read Mr. Gellert's full testimony click below:
The New York Times: Lax Oversight Blamed in Demise of MF Global
February 2, 2012
The New York Times DealBook discusses February 2's congressional hearing. Although House members questioned S&P and Moody's' late notice on the bankruptcy, DealBook writes, "Not everyone was slow to downgrade MF Global. James H. Gellert, the chief executive of Rapid Ratings, which unlike its competitors is paid by investors rather than the companies it rates, had a more negative outlook on MF Global for two years. 'We saw significant warning signs across the board,' Mr. Gellert said."
Commodities Now: Rapid Ratings to Testify on the Collapse of MF Global
February 2, 2012
Commodities Now describes the involvement of Rapid Ratings' Chairman and CEO, James Gellert, in the congressional hearing, "The Collapse of MF Global: Part 2." They write, "The Big Three have repeatedly and systematically failed to provide early warnings for some of the biggest financial disasters in history — MF Global is a prime example — and this simple, consistent call for quality assurance is certainly more than reasonable."
CNN Money: The risks that killed MF Global
February 2, 2012
CNN Money discusses the hearing, "The Collapse of MF Global: Part 2." Reporter James O'Toole writes, "Also appearing Thursday was James Gellert, head of the smaller ratings agency Rapid Ratings International, which maintained a grim outlook on MF Global long before its larger counterparts did. Gellert noted in his testimony that MF Global's...new risks in the European strategy only made its situation more precarious."
Wall Street Journal: Rating Firms Face Pressure on Hill: Measure Would Require Quarterly Reviews to Help S&P, Moody's, Fitch Sound Earlier Warnings
February 1, 2012
US Representative Mike Fitzpatrick has drafted legislation that forces Nationally Recognized Statistical Rating Organizations to reaffirm the accuracy of their ratings quarterly. Rapid Ratings' CEO and Chairman, James Gellert, strongly supports this bill, and is quoted in the Journal as saying that the major ratings firms have "'not been held to any accountability standards once they've issued the ratings.'"
January 31, 2012
NEW YORK ‐ James H. Gellert, CEO and Chairman of Rapid Ratings™ International Inc., is scheduled to testify on "The Collapse of MF Global: Part 2" to the US House Financial Subcommittee on Oversight and Investigations on February 2, 2012 at 10 a.m. He will be testifying with the Chief Credit Officer at Moody’s and a managing director at Standard & Poor’s, representing the firm with the earliest warning signs on MF Global.
January 23, 2012
Roger Aitken discusses how Rapid Ratings stacks up to the Big Three: "Rapid was the first agency to signal problems with MF Global...some 30 months before the broker filed for bankruptcy late and years before the big boys noticed. It appears not to be a fluke. Rapid made early calls on US housebuilders, an early signal of the sub-prime crisis, and provided forward-looking alerts on Bear Stearns, Enron, Parmalat, Ford and US Steel."
January 13, 2012
Opalesque features Rapid Ratings and how its quantitative system caught what the other ratings agencies didn't: "Rapid Ratings is different in its approach in that its ratings are entirely systematic and based on empirical data. Unlike the traditional ratings agencies...Rapid Ratings' mathematical process generates a score from 0 to 100, providing greater granularity and a more 'absolute risk' vs 'relative risk' perspective."
January 11, 2012
NEW YORK ‐ Rapid Ratings™ International Inc., an independent ratings, research and analytics firm, today announced that Jeffrey Gibb has joined the company as Senior Vice President of Strategic Relations & Head of Legal Operations. Gibb, a former practicing attorney, in-house counsel for GE Capital and entrepreneur, will be primarily responsible for legal affairs and business development initiatives.
January 3, 2012
Rapid Ratings' CEO, James Gellert, sheds light on the company's rating of MF Global. As quoted by Ivy Schmerken, "'Our system is reacting to how well a company’s able to withstand a shock from the inside or outside. A company like MF Global was rated 23 — the equivalent of an S&P CCC- and a Moody’s Caa3. It’s not only junk, it’s deep junk.'"