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I can well imagine snickers but when you come to:
Objectivity: The methodology for assigning credit assessments must be rigorous, systematic, and subject to some form of validation based on historical experience.

...I would expect gales of laughter. How does "validation based on historical experience" survive Q3, '08? Or is treating all of '08 as an aberration what they mean by "some form"?

"It is not necessary to have hope in order to persevere."
by ARGeezer (ARGeezer a in a circle eurotrib daught com) on Fri Mar 26th, 2010 at 11:24:57 AM EST
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Also, anyone with an ounce of statistical sense knows that an "implied probability of default" of 0.04% annually is ridiculous on its face even if allegedly estimated from historical data...

The brainless should not be in banking -- Willem Buiter
by Migeru (migeru at eurotrib dot com) on Sat Mar 27th, 2010 at 07:29:18 AM EST
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