Buffett Defends Moody's Managers

Billionaire Warren Buffett defended his firm's investment in battered Moody's Corp., saying that mortgage-bond ratings issued by the firm were overwhelmed by the "greatest bubble I've seen in my life."

But the Berkshire Hathaway Inc. chief executive expressed doubts that even radical changes to the credit-ratings industry, such as creating a government-appointed board to select rating firms, would improve the quality and accuracy of ratings.

"I'm not arguing that this is the perfect model," Mr. Buffett said Wednesday at a hearing by the Financial Crisis Inquiry Commission, which subpoenaed the investor as part of the congressional panel's probe of the ...

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