Where was Moody's board when top-rated bonds blew up?

[muriel_volestrangler]

WASHINGTON — As the bottom fell out of the housing market and complex mortgage-backed securities began tanking in 2007, a strange thing happened at Moody's Investors Service, one of the largest firms that rate bonds for the risks they pose to investors.

Moody's blue-ribbon board of directors stopped receiving key information from an internal committee that was supposed to keep the board informed of risks to the company, a McClatchy investigation has found.

Instead, the ad hoc risk-management committee suddenly disappeared, precisely at the time when the board and management should have been shifting to higher alert as the financial world began quaking.
...
Moody's chief McDaniel remains on the job, with board support. He was awarded almost $7.38 million in salary and compensation in 2007, the year things fell apart; $7.56 million in 2008 as markets tanked; and $5.4 million last year.

http://www.mcclatchydc.com/2010/04/02/91419/where-was-moodys-board-when-top.html

Much more at the link.