JDA analysis: Moody’s fights back

Moody's senior execs Ray McDaniel and Brian Clarkson speak out about the JDA debacle

Moody's decision to introduce a new ratings methodology for financial institutions - joint default analysis (JDA) - could hardly have been more controversial. The attempt to incorporate a measure of external support for bank ratings based on the observation that they default far less often than corporates with comparative ratings prompted accusations that the agency was arrogant, greedy and out of touch.

In a move that won over some critics but inflamed others, it halted the rollout of JDA, and